The Supreme Court last week rejected a review petition of major cellular phone companies for reconsidering its October 2019 order endorsing the expanded definition of adjusted gross revenue to include all other services besides voice telephony. This was unsuccessfully challenged by the telcos. The rejection of the review poses an existentialist challenge to old telcos, more to Vodafone-Idea, a little less to Airtel. The former is now expected to cough up Rs 53,038 crores in interest, penalties and interest on penalties, and Airtel Rs 35,586 crores. And the due date is January 23. How can anyone expect them to come up with such astronomical amounts when the sector is under financial squeeze thanks to stiff, and unfair, competition from a relatively new entrant practicing predatory pricing. A few weeks ago, the head of the London-headquartered Vodafone group had expressed anguish at the state of the telcos in India, hinting at an artificial squeeze with official complicity in making it tough for them to survive. It is unlikely that even a government under pressure from vested interests would allow Vodafone-India to die. That will be a slap on the way India treats foreign investors. It is incumbent on the government to reconsider the demand, withdraw penalties and interest thereof, at the very minimum. Even though the government needs every paise it can raise in its current state of straitened finances, treating the telcos as a proverbial milch cow risks jeopardising huge investments and bank credit. Whatever the outside pressures, there should be no hesitation in helping the telcos, employing millions directly or indirectly, come through this financial crisis. Even a re-look at exorbitant spectrum charges would be in order given that digital revolution that the prime minister is pushing for in all spheres of government and private activity relies on the well-being of telcos.
