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Government Eases Telecos’ Pain By Announcing New Rules

The bone of contention between government and telecom giants of the country, Adjusted Gross Revenue (AGR), has been revamped.

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In a major push to the Telecom sector, the government announced new Telecom rules. The new rules were in demand for a long time and the government, finally, seems to have answered the calls for help.

The bone of contention between government and telecom giants of the country, Adjusted Gross Revenue (AGR), has been revamped. Major telecos have been suffering to pay the dues to the government and various calls were made to remove the non-telecom revenue from the purview of AGR.

The Reforms

The most important reform is related to the AGR. The new rules allow the companies to exclude the non-telecom revenue from the definition of AGR. This move is expected to come as a major relief to Vi, which owes a large amount of AGR dues to the government.

Apart from this, the duration of spectrum auction has been increased to 30 years. And the government has allowed the operators to share the spectrum. They can share it according to the intended benefits.

In a major push to do away with the ‘Licence Raj’ mindset, the government has allowed the operators to buy the equipment on their own. The FDI ceiling has also been removed. Under the automatic route, the companies are allowed to accept 100% FDI from 49% earlier.

A moratorium of 4 years has also been approved for dues to the telecom companies. The companies availing this will have to pay interest of 2% on the moratorium amount.

The rules are expected to come as a relief to major telecom companies who are fighting to survive in the Indian market.


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government telecom vodafone