According to a report by Edelweiss, relief measures reportedly being considered by the government may ease the telecom industry’s stress and grant Vodafone Idea Limited (Vi) some respite but the core issue adversely impacting the sector’s health can be remedied only with sizable tariff hikes for 4G prepaid customers. A moratorium on adjusted gross revenue (AGR) and spectrum payments, reduction in spectrum usage charge (SUC) and license fee are reportedly among the key relief measures being deliberated upon.
The report also elaborated upon the potential impact of the impending launch of JioPhone Next for Vi given that its large liabilities are falling due. According to Edelweiss, strong demand for JioPhone Next can potentially weaken Vi’s financial health. Further, it stated that the sooner the government measures and tariff hikes are rolled out the better it would be.