Good news for Jio-Airtel, know what the expert company predicted
There can be a good increase in the revenue of Reliance Jio and Bharat in the second quarter. According to market expert Jefferies, their revenue will increase by 7 percent. Jefferies said that Airtel can get the benefit due to the increase in tariff in Q2.
There can be a good increase in the revenue of Reliance Jio and Bharat in the second quarter. According to market expert Jefferies, their revenue will increase by 7 percent. Jefferies said that Airtel can get benefits due to an increase in tariff in Q2. Whereas Jio will benefit from increasing subscribers. Not only this, but Voda Idea can also get a boost again due to the grace of the government.
On the other hand, the government has imposed a fine of thousands of crores on Vodafone Idea (VI) and Bharti Airtel last week. The companies have got three weeks to pay the fine. However, one of these companies has spoken of challenging the demand. The Department of Telecommunications (DoT) has imposed this penalty based on a five-year-old recommendation of telecom regulator TRAI.
Meanwhile, the DoT has reduced the performance and financial bank guarantee requirement for telecom companies by 80 percent. In this context, a license amendment note was issued on Wednesday.
Under the amended rules, telecom companies will have to give a guarantee of up to Rs 44 crore on each service area for telecom license for performance in the area under contract or obligation. Whereas under the old rule, this guarantee was Rs 220 crore.
Similarly, telecom operators will now have to give a maximum guarantee of Rs 8.8 crore per circle as against Rs 44 crore earlier. As per the license amendment note, the new rules will not be applicable in cases where the bank guarantee has been given due to a court order or is subject to a legal dispute.
This rule will also not apply to those telecom operators who are currently going through the process of liquidation. This move of the government will increase the cash with the telecom operators, which they have deposited in banks in the form of bank guarantees.