Airtel Seeks Regulatory Clarity On AGR Dues Conversion To Equity

Bharti Airtel Ltd. is weighing out converting its sizeable adjusted gross revenue dues into government equity. The telecom firm will proceed only if the government provides clarity on whether such a route is available, aiming to ensure a level playing field with rival telecom operators.

During its fourth quarter earnings call, Vice-Chairman and Managing Director Gopal Vittal said that the company sought regulatory clarity on Rs 41,000 crore of AGR dues.

The application was filed to ensure that Airtel had the same options as its peers—notably Vodafone Idea, which has already undergone a debt-to-equity conversion, Vittal said.

“We just wanted a non-discriminatory level playing field,” he said, clarifying that whether the company will proceed with the conversion is a board-level decision yet to be made.

In April, the government had increased its stake in Vodafone Idea from 22.60% to 48.99%, taking its total holding to 36,950 crore equity shares.

On pricing, Airtel indicated a strategic rethink of its tariff architecture. While entry-level plans may see minimal changes, higher-tier offerings could be recalibrated — not necessarily through price hikes, but by lowering data thresholds, thereby nudging users towards premium plans with better value.

India's narrow pricing band between low and high-end plans was also flagged. Markets like Indonesia show a wider spread in tariffs, offering room for rebalancing and tiering in the Indian context, Vittal said. The goal: to shift from “small to extra-large” plans, incentivising upgrades while maintaining affordability.

On Starlink, Vittal said, it will "complement and enhance Airtel’s suite of products to provide ubiquitous connectivity across the country". Far from replacing existing offerings, the satellite solution is meant to augment Airtel’s portfolio, ensuring customers in even the most isolated areas can get online.

This tie-up underscores Airtel’s commitment to seamless national coverage — a mix of fiber, mobile, and now satellite-based internet access, he said.