AGR Dues Relief: Is Vodafone Idea’s 10-Year Payment Holiday an Unfair Advantage Over Airtel?

Synopsis:- A court-backed relief package on ₹83,400+ crore AGR dues has triggered demands for parity, with pending liabilities of ₹48,103 crore under scrutiny. The debate centres on competitive fairness, interest build-up since 2019, and the impact of staggered payments on market balance.

India’s telecom sector, encompassing cellular and fixed-line services, thrives with over 1.2 billion total telephone connections as of late FY2025, reflecting a 31.72% surge since 2014. Wireless subscribers dominate at around 1.16 billion, dwarfing fixed-line’s 37-45 million amid 5G FWA shifts. Sector revenues grew 12-14% in FY2025, hitting quarterly highs near  Rs 1 lakh crore by Q2 FY26.

With a market capitalisation of Rs 11,45,410.41 crore, the shares of Bharti Airtel Ltd were trading at Rs 2,008.40 per share, decreasing around 0.72 percent as compared to the previous closing price of Rs 2,023.00 apiece.

Supreme Court Relief

Earlier, the Supreme Court of India granted major relief to Vodafone Idea, allowing the Centre to create a special support package for its AGR dues of over  Rs 83,400 crore, easing financial stress on the telecom operator.

Following this ruling, Bharti Airtel plans to approach the Centre seeking reassessment and reconciliation of its AGR liabilities. Official estimates place Airtel’s pending dues at  Rs 48,103 crore as of March 31, which have increased since 2019 due to interest accumulation.

At the time of the 2019 order, the Department of Telecommunications pegged Airtel’s AGR dues at  Rs 44,000 crore, while the company assessed its liability at  Rs 13,000 crore. Airtel has already paid  Rs 18,000 crore, including  Rs 5,000 crore as ad-hoc payments.

The Financial Reality

Unlike Vodafone Idea, which is struggling financially, Airtel has successfully turned its business around since the 2019 AGR crisis. The company has returned to profitability, invested heavily in its network infrastructure, and now commands a 40% market share in the Indian telecom market. In the financial year 2025 alone, Airtel generated an impressive operating free cash flow of Rs 55,300 crore.

Airtel’s Vice Chairman, Gopal Vittal, has stated that the company has the financial strength to make all necessary payments. However, this doesn’t mean Airtel is willing to accept unequal treatment.

The Competitive Concern

Airtel’s main concern isn’t about its ability to pay but about competitive fairness. If Vi gets a 10-year payment holiday while Airtel must pay now, it creates an uneven competitive landscape. Vi can use its saved cash to invest in networks and compete more aggressively, while Airtel must divert funds to government payments.

This situation puts Airtel in a difficult position: financially capable but competitively disadvantaged. The company is now weighing its options carefully, seeking government engagement while keeping legal routes open as a backup plan.

Conclusion

In conclusion, Airtel’s push for AGR reassessment is driven less by financial stress and more by the need for competitive parity. While it can meet its obligations, unequal relief risks distorting market competition, potentially rewarding weaker players and penalising financially stronger operators in India’s rapidly evolving telecom sector.

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