Telecom duopoly will be bad for economy

A hike in tariffs is guaranteed. But it would not necessarily lead to higher ARPU

The telecom sector is fast approaching its endgame. The latest Supreme Court hearing makes it clear that there will be no easy reworking of adjusted gross revenue (AGR) dues. The discrepancy between the October calculation of what’s owed, and self-assessment by telecom service providers amounts to over Rs 82,000 crore.

There is one faint sliver of hope if the court agrees to the government’s suggestion that the dues be payable over 20 years, and calculated at a reduced interest rate of 8 per cent instead of 12 per cent. We’ll have clarity on that at the next hearing in April.

Even if