What Are The Major Reforms For Telecom Sector Announced By Govt?
16 Sep, 2021 09:42 IST|Sakshi Post
Major Reforms For Telecom Sector: The following are the key Telecom Reforms announced by the central government on Wednesday, September 15th. Take a look at all of the data presented below to get a clear sense of how these reforms will impact everyone.
Major Reforms For Telecom Sector:
- The Cabinet approved a relief package for the telecom sector.
- The government announced up to four years of moratorium on unpaid AGR and spectrum dues with an interest rate of SBI's MCLR plus 2% from October 1, 2021.
- The government also approved 100% FDI in telecom under the automatic route and increased the tenure of the future spectrum from 20 to 30 years.
- The AGR definition was rationalised to exclude non-telecom revenues prospectively.
- The Union Cabinet is believed to have approved a package 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, according to sources.
- The relief package for the telecom sector will come as a breather to the three private players at a time when Vodafone Idea is confronting an existential crisis.
- A huge reduction in Bank Guarantee requirements of 80% against License Fee and other similar levies. There are no requirements for multiple Bank Guarantees in different Licenced Service Areas or regions in the country.
- Interest rates are rationalised and penalties are removed.
- Surrender of the spectrum will be permitted after 10 years for spectrum acquired in future auctions.
- No Spectrum Usage Charge (SUC) for spectrum acquired in future spectrum auctions.
- A 0.5% SUC for spectrum sharing has been removed.
- Spectrum auctions are normally held in the last quarter of every financial year.
- The cumbersome requirement for licences under the 1953 Customs Notification for wireless equipment has been replaced with self-declaration.
- Self-KYC (App-based) is permitted. The E-KYC rate has been revised to only one rupee. Shifting from pre-paid to post-paid and vice-versa will not require a fresh KYC.
- Paper Customer Acquisition Forms will be replaced by digital storage of data.
- The DOT will accept data on a self-declaration basis through a portal. Portals of other agencies, such as civil aviation, will be linked with the DOT portal.