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Published 19:12 IST, September 15th 2021

Bharti Airtel welcomes Centre's reform package; 'heralds new dawn for telecom industry'

Telecommunications giant Bharti Airtel has welcomed the 'path-breaking' policy directions & interventions announced by the Govt to support the telecom industry.

Reported by: Gloria Methri
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Indian telecommunications giant Bharti Airtel has welcomed the 'path-breaking' policy directions and interventions announced by the Government of India to support the telecom industry that has been battered by unprecedented stress, high debt, and low return on investments.

Issuing a press release on Wednesday, the company said, "the reform package heralds a new dawn for the Indian telecom industry and will catalyze explosive growth of this vital sector. More importantly, it paves the way for a sustainable three private plus one state-owned telecom operator structure to serve a large market like India," it added.

Sunil Bharti Mittal, Chairman, Bharti Airtel thanked the Central Government, for undertaking these seminal reforms to lift an industry that’s at the core of Prime Minister Narendra Modi's 'Digital India' vision. 

“Bharti Airtel is fully committed to responding to the call by the Prime Minister to invest in and accelerate India’s growth. What lies ahead is a once-in-a-lifetime opportunity to build the digital infrastructure that is a catalyst for the digital aspirations of over one billion Indians,” added Mittal.

The company further stated that India’s digital economy has entered a phase of exponential growth, with digital solutions contributing to fast and inclusive growth by bringing more and more people online. Airtel exuded confidence that India has the potential to become one of the biggest digital ecosystems in the world as it moves towards achieving the $5 trillion GDP goal set by the Government.

Union IT Minister Ashwini Vaishnav on Wednesday announced major structural and process reforms in the telecom industry to deepen and broaden the sector. As per the reforms, the upcoming 4G and 5G technology will be designed and manufactured indigenously in the country, and that BSNL and other networks would be equipped with the new technology.

"The technology will be at par with global standards and not only will it be used in India but also be exported to other countries, thus working on the vision of making India a global player in the technology pertaining to the telecom sector," said Vaishnaw. 

Structural reforms in the telecom sector include:

  1. Adjusted Gross Revenue (AGR), which has been a highly contentious and litigated issue, has been rationalized. Non-telecom revenue will be removed from AGR.
  2. Heavy interest or penalty was applied on payment of charges and Licence Fees which increased an undue burden on industry participants, this has been rationalized, monthly compounding of interest has been annualized. 
  3. Spectrum duration has been changed from 20 years to 30 years. Spectrum sharing has also been allowed for the benefit of the industry and the consumers.
  4. 100% FDI has been allowed in the telecom sector through automatic routes with proper checks and balances and safeguards. 
  5. New mobile connections forms and KYC will be digital and the archaic system of physical forms to get new mobile phone connections will be abolished. 
  6. A calendar will be created for auction, allowing the industry to plan accordingly.
  7. Notifications that were implemented in 1953 will be amended to eliminate license raj. It will also lead to the easing of procedures to procure equipment.
  8. Cabinet approves 4-year moratorium period on payment of statutory dues by telecom operators; the operators to pay interest on moratorium period. 

Image: PTI

Updated 19:12 IST, September 15th 2021