The government has finally answered the distress call from the telecom sector with a set of nine structural reforms that address some of the major grievances of the sector.
The contentious definition of the Adjusted Gross Revenue (AGR) has also been revamped with non-telecom revenue excluded from its purview. The telecom companies have contested the AGR definition and have been burdened with pending AGR dues.
FDI reforms have also been announced and will boost investments in this capital-intensive sector.
The move will help in bringing robustness in the sector and bring fresh investment to the sector.
Auctions will mostly be held in the last quarter of the financial year, telecom minister Ashwini Vaishnaw said.
Here are the major reforms that have been announced:
1. AGR: AGR definition rationalised and non-telecom revenue will be excluded.
2. Moratorium on dues: A much needed moratorium has been announced on statutory dues of the telecom sector for four years. This will improve the cash flow which can be used in more productive areas.
3. Spectrum user charges will be rationalized and there will be now an annual Penalty on payment of licence fees, spectrum user charges and all kinds of charges have been completely scrapped.
4. There will be a calendar for spectrum auction and it will usually take place in the last quarter of the financial year.
5. Spectrum sharing has been allowed; telecom operator can share where they deem beneficial.
6. FDI: In a major boost for the sector, the government has increased the FDI in the sector under automatic route from 49% to 100%.
7. Licence Raj scrapped: Customs notification of 1953 have been done away with. It will allow telecom operators to easily import equipments.
No comments:
Post a Comment