Today the Modi cabinet has announced Big Bang Reforms for the Telecom Sector. It is believed that with these announcements, the current three companies will remain in the telecom sector and this sector will be rejuvenated by new investments in the coming days. Regarding today’s announcement, Reliance Industries chief Mukesh Ambani said that with new reforms and relief measures, the telecom sector will be able to achieve the targets set under the Digital India Mission. At the same time, Sunil Mittal, chairman of Bharti Airtel said that the telecom industry will now be able to invest boldly without any fear.
The Union Cabinet on Wednesday announced several reforms in the telecom sector. That includes redefining Adjusted Gross Revenue (AGR). Under this, only income received from telecom services will be included in this. The government assesses various charges on AGR. Ambani said, “The telecom sector is one of the key drivers of the economy and has an important role to play in making India a digital society. I welcome the announcement of reforms and relief measures by the Government of India. This will enable the industry to achieve the goals of Digital India. I thank the Prime Minister (Narendra Modi) for this bold initiative.”
Customers will get many benefits from this
RIL’s telecom arm Jio said that these reforms are a timely step towards strengthening India’s telecom sector. This will encourage the company to bring new and better benefits to the customers. Jio said, “The company looks forward to working with the Indian government and industry to achieve all the goals of the Digital India vision, so that we can collectively make every sector of the economy productive and make life easier for every Indian.” can make.”
Cabinet has also removed late fee
Sunil Mittal said that now one will be able to invest boldly without any fear. He said that Airtel would respond positively to Prime Minister Narendra Modi’s call to accelerate investment and growth of the country. Amid several relief measures for the stressed-out telecom sector, the Cabinet today rationalized the definition of gross adjusted revenue (AGR) by removing non-telecom income from it. The penalty on the amount likely to be due to the government has also been removed.
Now massive investment will come in Telecom
He thanked and congratulated the government for introducing these fundamental reforms to take the telecom sector out of pressure. Mittal said in a statement, “The reform measures taken by the Cabinet ensure that the industry will be able to invest and support India’s digital ambitions without fear. We also congratulate the Telecom Minister and the Finance Minister for their leadership and support.” In the relief package, the government has given a moratorium of four years on the payment of statutory dues to the telecom companies.
Digital India will get help from this
The Airtel Chairman said, “Bharti Airtel is fully committed to responding to the Prime Minister’s call to invest in and accelerate India’s growth. This is a once in a lifetime opportunity to build digital infrastructure as the digital aspirations of over 100 crore Indians.
Like a new dawn for the telecom sector
Bharti Airtel said that this reform package heralds a new dawn for the Indian telecom industry. These steps will give impetus to the vigorous growth of this vital sector. Airtel said, “This bold move is a reminder of the decisions taken by the National Democratic Alliance (NDA) government in 1999. Only after that the era of mobile services started in the country. Gopal Vittal, Managing Director and Chief Executive Officer (CEO) of Bharti Airtel India and South Asia said, “The new innovations will further fuel our efforts to invest in this exciting digital future.”
Moratorium big decision regarding AGR dues
Appreciating the telecom relief package, COAI (Cellular Operators Association of India), an organization of telecom companies, said that it will give a big relief to the stressed sector. The Union Cabinet approved the relief package for telecom companies. It seeks to include, among other things, only the income from telecom services in the adjusted gross revenue.
Process will speed up regarding 5G
COAI Director General SP Kochhar said in a statement, “We welcome the announced package. This is in line with our long standing demand. This will certainly bring relief to the stressed sector in the times to come.” Kochhar said the industry takes this as an indicator of the government’s thinking and is eager to rationalize the costs and processes associated with 5G implementation. is waiting. He said that the statement will be issued after detailed analysis of the package.
Old dues not written off
Sonam Chandwani, Managing Partner, KS Legal & Associates said, “This will give relief to a troubled telecom company like Vodafone Idea. Because otherwise, crores of rupees would have to be paid on the previous statutory dues. The liability has been deferred for some time, it has not been written off completely.
All eyes will be on how Voda will pay
He said that this will also give relief to the banks as they have a huge amount outstanding on Vodafone Idea. “While it is not yet clear how Vodafone will clear the dues, the extra time will certainly help them manage the stress.”
For now, Vodafone Idea will be eyeing
Chandwani also said, “The relief has come on time and it will help the telecom companies. The liability has been avoided, not liquidated. Given Vodafone’s dire financial situation, it is not yet clear how it will repay the debt and make the business viable.
(with language input)