According to Internet Service Providers Association of India (ISPAI), the relief granted to Vodafone Idea Limited (Vi) on its adjusted gross revenue (AGR) liabilities has prompted demands for similar government support from hundreds of standalone internet service providers (ISPs) and other non-telecom entities burdened with large AGR dues.
ISPAI, which represents more than 100 ISPs including Sify, Tikona, Tata Communications, Powergrid, Tata Sky, Connect Broadband, Netmagic and Excitel, said these companies are facing AGR demands running into over hundreds of billions rupees. The liabilities stem from a 2019 Supreme Court ruling, after which the Department of Telecommunications (DoT) raised AGR demands not only on telcos but also on ISPs, VSAT operators and certain public sector entities. Last week, the union cabinet approved a relief package for Vi, granting it a 10-year breather to pay over 95 per cent of its AGR dues. The company’s dues up to financial year (FY17) have been frozen at Rs 876.95 billion as of December 31, 2025, and a committee will reassess the amount.
DoT officials, however, have indicated that other companies seeking comparable relief would need approval from the Supreme Court. Bharti Airtel, which is due to start paying more than Rs 420 billion in AGR dues from the next financial year, has already indicated that it will approach the DoT seeking a reassessment of its liabilities.
