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In a dispute between Department of Telecommunications and Telecom companies over the meaning of Adjusted Gross Revenue (AGR), the Supreme court has given a judgment in favor of government, according to which telecom operators will have to pay additional dues of over Rs 1.3 lakh crore. Even the government has on various occasions admitted that the sector is indeed undergoing stress and needs support. Giving a ray of hope to the telecom companies, the government recently announced setting up of a Committee of Secretaries to examine the financial stress in the sector, and recommend measures to mitigate it. The move came a few days after the Supreme Court ruling. Government has also decided to merge the two loss- making telecom PSUs BSNL and MTNL as part of their revival package. A committee headed by Rajiv Gauba has been setup to help the struggling telecom sector. The Committee of Secretaries, headed by Cabinet Secretary Rajiv Gauba, will have Secretaries of Ministries of Finance, Telecommunication and Law, among others as members and look at “all aspects” of the financial stress. It will also consider some of the long-standing demands of the industry, including granting a delay in payment of dues for spectrum for the next two financial years (2020-21 and 2021-22).
What steps can be taken to improve the telecom sector in the country?
i Curb on predatory pricing
ii Infrastructure sharing between telecoms
iii Value addition in services
Select the correct answer using the code given below
i. and ii only
ii and iii only
i. and iii only
All of the above
None of these
Following steps can be taken to improve the telecom sector in the country
Curb on predatory pricing- government should fix a ‘floor tariff’ to save the industry from price war.
Infrastructure sharing between telecoms- BSNL can share its infrastructure for the use of private sector which will create revenue for BSNL as well as reduce investment load on private sector.
Value addition in services- Internet services can be clubbed with services like entertainment, e-education, telemedicine etc. which can lead to more revenue generation for the sector.
By: Himani Bihagra ProfileResourcesReport error
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