Question : Reforms in the Telecom Sector

(a) whether the Government recently has approved a number of structural and procedural reforms in the telecom sector for boosting employment, growth, competition and consumer interests;

(b) if so, the details thereof;

(c) whether the reforms are focused to ensure that affordable telecom services are reaching the poor households; and

(d) if so, the details thereof?

Answer given by the minister

MINISTER OF STATE FOR COMMUNICATIONS
(SHRI DEVUSINH CHAUHAN)

(a) & (b) For boosting employment, growth, competition and consumer interests in the telecom sector, structural and procedural reforms have been approved by the Government on 15th September 2021. These reforms include Rationalization of Adjusted Gross Revenue; Rationalization of Bank Guarantees(BGs); Rationalization of interest rates and removal of penalties; Dispensing with the requirement of BGs (for auctions held henceforth) to secure instalment payments; Increasing spectrum tenure from 20 years to 30 years(in future auctions); Permission for surrender of spectrum after 10 years (in future auctions); Dispensing with the requirement of Spectrum Usage Charge (SUC) for spectrum acquired in future spectrum auctions; Removal of additional SUC of 0.5% for spectrum sharing; Permission for 100% Foreign Direct Investment (FDI) in telecom sector under automatic route subject to safeguards; Fixed time for spectrum auctions (normally in the last quarter of every financial year); Requirement of licenses under 1953 Customs Notification for wireless equipment replaced with self-declaration; Permission for Self-KYC; e-KYC rate revised to only one Rupee; Dispensing with the requirement of fresh KYC for shifting from Prepaid to Post-paid and vice-versa; Replacement of paper Customer Acquisition Forms with digital storage of data; Easing SACFA clearance for telecom towers; and Addressing liquidity requirements of the Telecom Service Providers by way of moratorium/deferment.

(c) & (d) These reform measures have potential to boost proliferation of telecom connectivity across the country, create an enabling environment for investment. Above have potential to promote competition and customer choice, antyodaya for inclusive development and bringing the marginalized areas into the mainstream and universal broadband access to help connect the unconnected.

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