Sept. 16, 2021

The Union Cabinet approved a number of structural and process reforms in the Telecom sector.


  • 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.