There’s been some more good news for Bharti Airtel and Vodafone Idea in the aftermath of the Indian Supreme Court ruling that has given both operators ten years to pay outstanding adjusted gross revenue (AGR) fees.
Indian press reports indicate that rating agency Moody’s has upgraded its outlook for Bharti Airtel from negative to stable, noting that the AGR ruling will ‘alleviate pressure on cash flow and help improve operating flexibility’.
It has been suggested that the AGR payment decision is a positive development as it means some of the proceeds the operator raised earlier this year to pay the tax can instead be applied to debt reduction.
The company has enjoyed improving profitability at its core Indian mobile business, an increase in its 4G customer base, and a gradual reduction in competition, according to reports. Last year’s tariff hikes seem also to have helped.
Meanwhile, Vodafone Idea Limited, recently rebranded as Vi, is to be the co-presenting sponsor of the upcoming Dream11 IPL 2020, the massively popular cricket competition scheduled to commence from 19 September.
It’s certainly newsworthy, but will it be good for business? Kavita Nair, Chief Digital Transformation & Brand Officer, Vodafone Idea Limited, seems to think so, suggesting that this association will "not only help build awareness of Vi but also help in building relevance and customer confidence”.