Who is likely to benefit the most from the Telecom package, Jio, Bharti Airtel or Vodafone Idea?

If you go by the perspective of Moody’s , they expect this telecom relief package to be credit positive for Reliance Jio and for Bharti Airtel as the real challenge for Vodafone Idea will be first to return to solvency. What could benefit Jio and Bharti Airtel is the permission to get 100% FDI via the automatic route as well as the change in definition of AGR to exclude the non-telecom revenues. This will reduce the burden in the years to come.

The report also noted that the relief for Vodafone will be more in terms of temporary cash flow relief, although their overall liability does not change. The interest cost on moratorium could be an added cost for Vodafone. According to Moody’s, the measures will free up cash flow for reinvestment in the case of Jio and Bharti Airtel. Bharti will also gain as its leverage position has bene gradually improving. Annual cash freed up for Bharti will be Rs.13,000 cr.