Doha-based Qatar Foundation Endowment has bought five per cent stake for $1.18 billion in Bharti Airtel.
Analysts at rating agency ICRA say the debt level of the telecom companies is very high and the ecosystem for the premium band is not in place.
Foreign-origin companies may still hold sway over consumer product and electronics companies but, in several areas, be it tractors, liquor or specialised financial products, it is the Indians who are the kings.
Bharti Airtel called the prices exorbitant while Vodafone Idea wants the auctions take place in 2020. The auctions need to happen when the infrastructure is ready for the roll out, be it in terms of fiberisation levels, or optimisation of equipment and software etc. Spending a hefty amount on a technology (airwaves) that at present offers limited returns is not going to be a priority for the incumbent telcos.
Experts explain the distinction between the rights of small and minority shareholders in public-listed and private companies.
Finance ministry officials said they were scrutinising many deals, but the actual tax liability would depend on many factors, including the kind of payment (royalty, interest, stake sale) and the Double Tax Avoidance Agreement with the country where the foreign company was based.
Just to promote govt's policy of Make in India, BSNL said, it cannot afford to procure sub-standard equipment from inexperienced companies, not having proven technology. BSNL complained that when competitors were procuring world-class 4G equipment from experienced vendors, why should BSNL be compelled to procure locally.
Jio is in a neck and neck battle with Airtel, which added a similar number of subscribers as Jio in the 15 months from February 2017 to April 2018
However, the government is readying a relief package and it could include a cut in the licence fee to 5 per cent, two years' moratorium on paying spectrum charges with interest, and referring the GST tax refund issue to the Council.
India offers good long-term investment opportunities.
"Kraft's acquisition of Cadbury is a global acquisition, where some value is attributable to India. This is different from Vodafone, where the transfer of a single share of the offshore company by Hutch resulted in the Indian business getting transferred to Vodafone," said Pranay Bhatia, associate partner at legal firm Economic Laws Practice.
These circles account for 23 per cent of Bharti's revenues and armed with additional spectrum, it will eat into rivals' share
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Around 1,200 protesters demanding scrapping of the amended citizenship act were detained on Thursday when they defied prohibitory orders imposed by the Delhi Police in Red Fort area. Internet, voice and messaging services by Airtel, Vodafone, Idea and Reliance Jio were suspended in parts of Delhi-NCR, in perhaps for the first time that the national capital experienced such restrictions.
Sources at the department of telecommunications confirmed that Bharti Airtel has submitted application to bid for airwaves frequencies at pan-India level.
After initial success, data use is stagnating and getting consumers to spend additional money for high-speed internet is proving to be difficult for telcos.
DoT's proposal to impact many, including Vodafone
DoT officials said instructions have been issued to Idea and Vodafone to provide the requisite information to IB at the earliest.
Bharti Airtel and Vodafone Idea have communicated to the telecom department that they will not pay AGR dues of Rs 88,624 crore, the deadline for which ended on Thursday, and will wait for the outcome of modification petition listed for hearing before the Supreme Court next week, according to official sources. Reliance Jio on Thursday paid Rs 195 crore to the telecom department to clear all adjusted gross revenue dues accounted till January 31, 2020, according to an official source.
Billionaire Mukesh Ambani on Tuesday hinted at rolling out 5G telecom services in the second half of 2021 and said policy steps are needed to accelerate the early rollout of ultra-high-speed 5G services that are affordable and available everywhere. Ambani, whose four-year-old telecom venture Jio has captured the No.1 spot offering free voice calling and data at dirt-cheap rates, also pitched for developing hardware manufacturing in India, saying the nation cannot rely on imports in such a critical area. 5G is the 5th generation mobile network that enables connecting virtually everyone and everything together including machines, objects, and devices. India, he said, is today among the best digitally connected nations in the world.
Do a straw poll of any business friends and you will laugh and weep at what they go through, points out Rahul Jacob.
Severe jolt to Sahara Group, strict scrutiny of mining activities and scrapping of licences for 2G spectrum dominated the corporate legal battle in 2012 in the Supreme Court which gave a decisive victory to telecom major Vodafone in a Rs 11,000 crore tax case.
'MFs acted as reckless lenders and not as prudent investors.' 'Clearly, how debt funds are being run is a systemic issue,' warns Debashis Basu.
Given the security dilemma prevailing between India and China, India should curb the operation of Chinese telecom companies in India, asserts Dr Rup Narayan Das.
The pandemic has brutally highlighted the inadequacy of India's administrative systems. And, the government has demonstrated its culpable inability to speed up vaccination in a timely manner, says Jaimini Bhagwati.
Total subscriber base at the end of November 2011 stood at 663.78 million users.
Apart from the Google team led by AI scientist Manish Gupta, the company will also partner with the research community across the country to focus on tackling challenges in fields like healthcare, agriculture, and education.
The big advantage that Jio is able to garner currently is its low cost of operations.
Stage is set for Mumbai's motorsports fans to witness Formula One star Lewis Hamilton scorching the roads of the Bandra Kurla Complex, Mumbai on Sunday.
The organisers of the September 16 Vodafone Speed Fest featuring British Formula One driver Lewis Hamilton have shifted the event from Marine Drive to Bandra Kurla Complex following objections from the residents of the picturesque south Mumbai venue.
Here we encapsulate all the sporting action from last week in this stunning photo feature.
The main Opposition party suggested that Prime Minister Manmohan Singh and former Finance Minister Pranab Mukherjee were not on the same page with regard to the retrospective amendment to tax laws against the backdrop of Vodafone case, leading to the current precarious situation.
The top three operators - Airtel, Vodafone and Idea - which account for over 67 per cent of the GSM market, lost over 2.17 million users in September.
Successful bidders will have to pay 25 per cent of the amount upfront for sub 1 GHz, and 50 per cent upfront for higher frequency bands.
Airtel operates as Airtel-Vodafone in Jersey and Guernsey to offer Vodafone trademarks in the British Channel Islands.
Although the industry is disappointed with the government decision not to lower spectrum prices at a time telcos are saddled with over Rs 4-trillion debt and an estimated Rs 1.43-trillion licence fee dues, the DCC has relaxed the payment structure to offer some relief to the financially stressed sector.
Idea tops list of companies with high percentage of active subscribers.
In the broader market, the BSE Midcap index bucked the trend to gain 0.3%
The Supreme Court on Tuesday granted 10-year time to telecom firms like Vodafone Idea, Bharti Airtel and Tata Teleservices for paying the Adjusted Gross Revenue (AGR)-related dues to the department of telecommunications with certain conditions.
A senior company executive said the company waited for seven years for the verdict and its shareholders needed to know when it would be concluded.
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