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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 is the teledensity of India?
94.3%
90%
92.8%
90.2%
91.9%
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. The overall teledensity in the country is 90.23%. While the rural teledensity is currently 57.01%, the urban teledensity stands at 160.87%.Major sectors of the Indian telecommunication industry are telephone, internet and television broadcast industry in the country which is in an ongoing process of transforming into next generation network, employs an extensive system of modern network elements such as digital telephone exchanges, mobile switching centres, media gateways and signalling gateways at the core, interconnected by a wide variety of transmission systems using fibre-optics or Microwave radio relay networks. The access network, which connects the subscriber to the core, is highly diversified with different copper-pair, optic-fibre and wireless technologies.
By: Himani Bihagra ProfileResourcesReport error
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