REFORMS IN THE TELECOM SECTOR

About:

• The cabinet approved 9 structural reforms and 5 process reforms for the telecom sector.
  
  
• Adjusted gross revenue (AGR) definition has been rationalised to exclude non-telecom revenues prospectively and 4-year moratorium on telecom dues was approved as well.
  
  
• For all the telecom service providers (TSPs), cabinet approved moratorium/deferment of upto 4 years in annual payments of dues arising out of the AGR judgement, by protecting the Net Present Value (NPV) of the due amounts being protected.
  
  
• To encourage investment, 100% foreign direct investment (FDI) under automatic route is permitted in telecom sector.
  
  
• Spectrum user charges have been rationalised. There will be now an annual compounding of rates. Spectrum can now be surrendered, spectrum can also be shared.
  
  
• In future auctions, tenure of spectrum will be increased to 30 years from 20 currently.
  
  
• The KYC process for shifting to postpaid from prepaid has ben done away with.