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More relief for struggling Indian telecom firms

The Indian telecom department’s latest note on adjusted gross revenue computation is expected to provide relief to legacy telecom players like Bharti Airtel and Vodafone Idea, who owe the government 260 billion rupees (US$3.4 billion) and 503 billion rupees respectively.

The department has removed several non-telecom income sources such as property rents, dividends and interest while considering adjusted gross revenue, the Economic Times reported.

The new norm will be applicable from October 1 and is expected to reduce the stress in the telecom sector as it will reduce telecom companies’ future payment obligations. Market analysts say that non-core revenue constitutes nearly 10% of the total revenue of telecom companies.



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