Cabinet Approves Number Of Structural And Process Reforms In Telecom Sector

The Union Cabinet today approved a number of structural and process reforms in the Telecom sector. These are expected to protect and generate employment opportunities, promote healthy competition, protect interests of consumers, infuse liquidity, encourage investment and reduce regulatory burden on Telecom Service Providers (TSPs). Nine structural reforms and Five procedural reforms plus relief measures for the Telecom Service Providers. The structural reforms include rationalization of Adjusted Gross Revenue, Bank Guarantees (BGs) rationalization, no requirements for multiple BGs in different Licensed Service Areas (LSAs) regions in the country, interest rates rationalization etc. The procedural reforms include Fixing of Auction calendar, promotion of ease of doing business, SACFA clearance for telecom towers, Addressing Liquidity requirements of Telecom Service Providers etc.

The Cabinet approved for all the Telecom Service Providers (TSPs) moratorium/Deferment of upto four years in annual payments of dues arising out of the AGR judgement, with however, by protecting the Net Present Value (NPV) of the due amounts being protected. Moratorium/Deferment on due payments of spectrum purchased in past auctions (excluding the auction of 2021) for upto four years with NPV protected at the interest rate stipulated in the respective auctions. It also offered an option to the TSPs to pay the interest amount arising due to the said deferment of payment by way of equity.

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