As per Morgan Stanley, with the Supreme Court (SC) ordering collection of telecom dues based on theDepartment of Telecommunication’s (DoT) demand, India may be headed towards a duopoly structure.

The firm added that the ruling has made matters worse for Vodafone Idea Limited (VIL) while Bharti Airtel and Reliance Jio are well placed due to strong balance sheets.

As per Morgan Stanley, Jio does not run any risk on the AGR front.

In its note, Morgan Stanley, said that the self-assessment done by Airtel and VIL pegs their adjusted revenue (AGR) liabilities at less than half of the levels determined by the DoT.

In its recent judgment on AGR issue, the apex court rejected the AGR dues determined by telcos through a self-assessment exercise ordering them to pay the principal together with interest and penalties. Further, the SC will be hearing DoT’s plea on staggering the payment timeline in two weeks.