A level playing field

Support to Vodafone Idea should not be exclusive

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The five-year moratorium that Vodafone Idea (Vi) has secured for paying its adjusted gross revenue (AGR) dues to the government is a substantial relief for the financially stressed telecom operator.

The lifeline, which will let Vi pay the AGR dues of %87,695 crore from 2031-32 to 2040-41 instead of from March 2026, is expected to enable the telecom operator to set its house in order by raising funds, strengthening its business, and arresting subscriber erosion in the meantime. The Union Cabinet's latest approval to freeze Vi's AGR dues for five years is also a government step in the direction of preventing a duopoly situation in the telecom sector. This comes at a time when a near duopoly in the aviation sector has come into focus after the recent chaos triggered by IndiGo’s flight cancellations over new norms on pilot rest. In a bid to reverse the duopoly character in Indian aviation, the government has even granted no-objection certificates to a string of companies seeking to start airlines.