(This note has been edited after availability of actual numbers in DoT’s application for modification filed on 16th March 2020)
A few months back I had done a note titled “AGR Issue: Operator Payment Options” predicting that possible resolution of this vexed issue will be a deferred payment option proposed by DoT in order to alleviate the pain of the operators and prevent the weakest operator to shut down. Based on yesterday’s modification application of DoT (before the Supreme Court), one can see that DoT has requested the SC to permit more relaxed payment terms for the operators. The purpose of this note is to estimate by how much (percentage) the current payment obligation (dues of spectrum auctions) of Bharti and VodafoneIdea will increase if this proposal was to get finalized as a final settlement. While doing so I will also estimate the impact in case the DoT gets convinced of the operator’s self-assessment calculations of estimating the dues emanating out of the SC judgment.
