Telecom sector reforms will reduce financial stress, boost investment & encourage healthy competition: COAI
The Union Cabinet today approved nine structural reforms and five process reforms for the telecom sector, aimed at giving relief to companies such as Vodafone Idea that have to pay thousands of crores in unprovisioned past statutory dues.
The wide set of measures proposed entail reforms for the ailing sector by way of granting moratorium on unpaid dues, redefining adjusted gross revenue (AGR) prospectively and cut in Spectrum Usage Charges.
Welcoming the reforms, Lt. Gen. Dr. S.P. Kochhar, Director-General, COAI said, “We welcome the Government’s bold and forward-looking decision on the much-needed reforms for the telecom sector. We thank the Hon’ble Prime Minister for recognizing the telecom industry as a critical infrastructure, which has played a vital role for the growth of the economy during this pandemic. The decision announced by the Hon’ble Minister of Communications is an indication of the Government’s intent for the much-needed structural reforms in the telecommunications sector, in scripting the success of Digital India and in accelerating the journey to meet Digital India goals which will ultimately deliver ample benefit to the individual consumers. These steps would go a long way in relieving the financial stress the sector is facing, boosting investments, encouraging healthy competition and in offering choice to customers. The announcement is aligned with the telecom industry’s long-standing asks.”