Sumary of Telecom Sector Gets Mega Boost: 100% FDI, 4-year Moratorium for AGR Dues, Shared Spectrum:
- The Cabinet meeting chaired by the Prime Minister Narendra Modi has approved 9 structural reforms and 5 process reforms for the telecom sector on Wednesday.
- Amongst the raft of decisions taken for the telecom sector, one of the most important decisions is the spectrum user charge that has been rationalised.
- As per the decision passed by the cabinet, spectrum usage charges are rationalised;
- In addition to this, spectrum can now be surrendered and spectrum can also be shared.
- I do not like to put a number on the package as it is revenue-neutral for the government,” Ashwini Vaishnav, minister of telecom said.
- Among the big reforms, rationalisation of AGR, and waiving of spectrum usage charge (SUC) for spectrum acquired in future spectrum auctions are the most important decisions taken by the cabinet.
- However, surrender of spectrum is permitted after 10 years for spectrum acquired in the future auctions.
- “If someone took spectrum and business conditions and technology changed, after a ten-year lock in period, after paying defined surrender charge, spectrum can also be surrendered.