Telcos won’t get 20 years to pay AGR dues if licences expire

Mumbai: The telecom department will not allow telcos to use the full 20-year period to pay their AGR dues in circles where the licences expire, if the Supreme Court accepts the staggered payment proposal of the government, a person familiar with the matter said.The person said the government will insist that unless the licence is renewed, the telco will have to pay its statutory dues for the circle in which its license for spectrum is expiring, by the expiry date. “A telco cannot use the 20-year period to pay for spectrum dues, even if its license has expired. Payments need to happen while the licenses are valid,” said the person aware of the development. The comments clear the air for Vodafone Idea and Bharti Airtel, who are the worst affected by the SC order of October on widening the definition of AGR, and have licences across circles ready to expire well before the 20-year outer limit, which will expire in 2040.For instance, in 2021, Airtel has eight licences expiring while Tata Teleservices has four. Tata Teleservices had already sold its consumer mobility business to Airtel. Then in 2024, the two operators will have to renew another six and 12 licences, respectively. Vodafone Idea’s renewal will kick-in in 2033 when it will see 22 of its licences expiring.The three telcos did not comment on ET's queries.

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