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Vodafone Idea Will Pay LF Dues to DoT by Next Week: Report

Posted: 10 Apr 2021 08:30 AM PDT

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Vodafone Idea (Vi) will most probably clear its outstanding dues for Q4 of FY21 after being called out by the Department of Telecommunications (DoT) for non-payment of the license fee for seven circles, including Bihar, Gujarat, Jammu & Kashmir, Kerala, Maharashtra, Uttar Pradesh (East) and Orissa.

According to an ET Telecom Report, partial payment has been made to the DoT, and the remaining amount will follow by next week.

What Caused DoT to Issue a Show-Cause Notice?

The payment was due on March 25, according to the show-cause notice that was drawn by the Department of Telecommunications (DoT) on April 7. DoT has been generous enough to seek out the information as to why the action shouldn’t be taken against the cash-strapped Vi. In contrast, the DoT could have easily invoked telco’s bank guarantees or, even worse, cancel its license for disobeying licensing conditions.

Vi was provided with an extension until April 15 to make the payment. It is quite evident that things are not looking great for Vi due to its weak financials. Vi has been unable to increase its tariffs due to the tough competition that it is facing. The tariff increase could have strengthened its finances. Amidst the lockdown, the company will be forced to increase the tariffs, which might lead the subscriber count to fall rapidly.

Vi, however, still has the chance of explaining for the delay in payments, which needs to be done by April 12. The Unified License Agreement states that the payment needs to be made in four quarterly instalments. Last year for the same quarter, the telecom operator had paid Rs 1,367 crores towards license fees and spectrum usage charges (SUC). For the first quarter (April-June), the telco paid Rs 1,200 crores.

The telco needs to strengthen its 4G operations sizeably in its 16 priority circles to survive and strive to compete against the stronger telcos, Bharti Airtel and Reliance Jio. Further, Vi needs to clear its Adjusted Gross Revenue (AGR) of Rs 50,400 crore.

Vodafone Idea (Vi) has already lost 2.3 million wireless subscribers in January, while giants like Bharti Airtel and Reliance Jio has gained 5.9 million and 2 million users, respectively. It can be summarised that the scenario is looking tough for Vi, but it will be intriguing to see what Vi does to stay afloat.

BSNL and MTNL Are Two Other AGR Dues Payment Defaulters

Posted: 10 Apr 2021 07:00 AM PDT

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The two state-run telecom operators, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) owe the Department of Telecommunications (DoT) thousands of crores in adjusted gross revenue (AGR) dues.

To be precise, BSNL and MTNL together owe around Rs 10,000 crores to the DoT for AGR dues. Individually, BSNL has dues of Rs 5,835 crores and MTNL of Rs 4,352 crores. According to a PTI report, the AGR dues calculated for the two telcos includes interest and interest on the penalty.

The total dues calculated are for up to FY2016-17. Both the telcos have not paid anything on the AGR dues front to the DoT. To recall, the SC, on September 1, 2020, had ordered all the telcos to pay a 10% advance on their AGR dues before the end of March 31, 2021.

But none of the telcos has fulfilled that order. Thus, DoT has filed an affidavit for the same in SC, saying that Airtel, Vodafone Idea (Vi) and Tata Telecommunications need to clear their dues.

The telcos say that they don't have to pay anything since they have already paid more than 10% advance on their dues.

Do note that even though the state-run telcos weren't part of the AGR dues litigation last year, both BSNL's and MTNL's names were included in the DoT's list of companies that were liable to pay the dues.

But the DoT isn't going after BSNL and MTNL the same way it is targeting Airtel, Vi, and Tata Tele. The private operators have further asked for a recalculation of the dues saying that DoT had made 'arithmetical errors' while calculating total dues.

The total dues assessed by the telcos and the DoT's assessments differ by a mile. It will be interesting to see how the SC approaches the operators’ recalculation request when it had made crystal clear that it won't entertain any further reassessment requests.

BSNL Offering Plan Voucher For 180 Days and 2GB Daily Data, Check Details

Posted: 10 Apr 2021 02:37 AM PDT

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Bharat Sanchar Nigam Limited (BSNL) keeps on introducing new plans with varied benefits. It has launched yet another prepaid plan for Rs 197, which carries a validity of 197 days. The state-run telco has made this offer unique in a way that the freebies or benefits that come with the plan are only active for the first 18 days, but the number will be active in service for up to 180 days.

With the BSNL's Rs 197 voucher, users get 2GB daily data along with unlimited voice calling and 100 SMS/day. As mentioned above, all these freebies will only be active for the first 18 days. Users can opt for other top-up plans or data vouchers after 18 days if they want to continue with BSNL's voice calling and data service.

Users also get a free over-the-top (OTT) benefit of Zing, a live-streaming application that can be downloaded from the Play Store. BSNL users will be able to stream all the premium content from the application without paying any extra cost. Do note that the OTT benefit also stays valid for 18 days only.

If you are wondering why the extra validity if the freebies expire, understand that it is merely to keep the number active. If your BSNL number is active, you can recharge with a special tariff voucher (STV) and get data, voice calling, and SMS benefits.

If your BSNL number doesn't have a plan voucher to keep it activated, it will not receive any services from the state-run telco. Thus, even if you purchase an STV, but you don't have a plan voucher, the STV won't work. It is just like purchasing data vouchers on top of an unlimited plan provided by Jio, Airtel, and Vodafone Idea (Vi).

BSNL also offers plenty of other plan vouchers that users can subscribe to for either extending the validity of the initial voucher or activating the SIM.

Maximum FUP Data Plans From Bharti Airtel, Vodafone Idea and Reliance Jio Listed

Posted: 09 Apr 2021 10:29 PM PDT

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The demand for data and its application has risen since the pandemic took over the world. For those users who need additional data, telecom companies have plans to assist those working from home. While a substantial number of people have switched to fiber broadband connections for a reliable internet experience, a majority of the population relies on 4G mobile data for getting fulfilling their work and entertainment needs. Indian telecom operators such as Bharti Airtel, Vodafone Idea (Vi) and Reliance Jio do offer additional data through top-up packs. Still, these operators also offer plans that provide users with higher data in their main prepaid plan. We are listing for you all the maximum fair usage policy (FUP) data prepaid plans from Airtel, Jio, and Vi.

Reliance Jio Maximum FUP Data Plans

Reliance Jio offers several plans that provide users with daily data ranging from 1GB to 3GB. While we have often read about the affordable plans from Reliance Jio and others, the 3GB plans are a perfect fit for many who rely more on their mobile networks for data consumption than wired broadband.

The top tier 3GB per day plans from Reliance Jio come for Rs 349, Rs 401, and Rs 999. All plans come with 3GB daily data and offer users unlimited voice calling without any Interconnect Usage Charges (IUC) that used to be there previously. Further, users get 100 SMS/day and a free subscription to all the Jio apps. Post FUP data consumption, the speed for the user drops to 64 Kbps.

The Rs 401 plan comes with an over-the-top (OTT) benefit of Disney+ Hotstar VIP for 1 year. The Rs 349 and Rs 401 plans carry a validity of 28 days and the Rs 999 plan comes with a validity of 84 days.

Vodafone Idea Maximum FUP Data Plans

Vi provides maximum FUP data with three prepaid plans – Rs 801, Rs 601, and Rs 401. All of these plans come with 3GB of daily data, provide users with unlimited voice calling and 100 SMS/day. Further, each of the plans also comes with the ‘Binge all Night’ offer coupled with the ‘Weekend Data Rollover’ offer from Vi. There is a free OTT benefit of Disney+ Hotstar VIP for one year, along with Vi Movies & TV subscription included in all of the plans.

The only area where these plans differ is in the validity they come with and the bonus data they offer. The Rs 401 plan offers 16GB bonus data and is valid for 28 days only, while the Rs 601 plan offers 32GB bonus data and is valid for 56 days. Lastly, the Rs 801 plan offers 48GB bonus data and is valid for 84 days.

Airtel Maximum FUP Data Plans

Airtel offers multiple 3GB daily data plans as well. These plans come for – Rs 398, Rs 448, and Rs 558. All the plans offer unlimited voice calling, 100 SMS/day, and 3GB daily FUP data. There is a free OTT benefit of Amazon Prime Video Mobile Edition for 1 month and other Airtel Thanks benefits in all the plans.

The Rs 448 plan also offers a free subscription of Disney+ Hotstar VIP to the users for 1 year. The Rs 398 and Rs 448 plans come with a validity of 28 days, while the Rs 558 plan carries a validity of 56 days.

Vodafone Idea’s Next Move Could be Enterprise Solutions, Here’s Why

Posted: 09 Apr 2021 08:10 PM PDT

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Vodafone Idea (Vi) has launched a series of new enterprise solutions in the last couple of days. The telco has a separate arm called 'Vi Business' that caters to the needs and demands of enterprises throughout India.

Vi's next move could be providing 'enterprise solutions' in the market. This is because no matter what Vi is doing, the amazing offers it keeps on rolling out, the telco has not seen a net gain in quarterly or monthly subscribers. This has been going on for far too long for the company now.

Thus, the recent launch of Internet-of-Things (IoT) service and enterprise mobility solutions hint that the company is moving towards a different part of the market. Now, Vi wouldn't be the first company to do that.

Airtel, despite having such an impressive portfolio of high average revenue per user (ARPU) users and strong financials, focuses a lot on serving other businesses of India. This means that Airtel doesn't need to rely on only one segment of the market; it can make money off multiple kinds of customers and clients.

Vi might be looking to do the same, however, with a few key differences. All of the enterprise activities of the telco is handled by 'Vi Business', the enterprise arm of the company. Vi will offer customised plans and services according to the needs of enterprises through Vi Business.

For the unaware, Vi is already the biggest IoT telecom service provider in India. The telco leverages its 5G ready-network to provide IoT services to customers. In its mobility solutions segment, Vi offers postpaid plans especially aimed at businesses along with other useful features and services.

Vi Business Plus Postpaid Plans

Vi Business allows clients to provide their employees with 'Business Plus postpaid plans starting from Rs 299. These plans come with the facility of location tracking, data pooling, entertainment benefit, and mobile security.

Further, the telco offers international roaming plans which could be utilised in more than 80 countries. Vi provides clients with 'Customer Targeting Solutions' aimed to help them in marketing and creating better strategies to attract new customers and retain older ones.

The telco allows businesses or enterprises to share their needs with them through its website and customer care portal. Depending on the client's needs, the telco will develop the appropriate solution to best tackle the customer's problems.

These are only a handful of services that Vi already provides to its business clients.

Vi Finally Going Towards Business Market?

We believe that the telco might be focusing more on the 'enterprise' side of the market rather than on the low ARPU mobile customers. With enterprises and other businesses on its portfolio, the telco would be able to increase its overall revenues and utilise its spectrum resource and other resources in an efficient manner.

This also makes a lot of sense since the telco isn't seeing any results in the 4G market controlled by both Jio and Airtel. Note that this is not an official statement from the company or anyone else. We are assuming Vi could be going towards the enterprise part of the market for higher revenues.

There's no way the company would pivot to a completely new business by ditching the 3G and 4G subscribers and only focus on the enterprise part of the market.

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