New telecom policy to focus on technology

The new telecom policy, which is being planned by the Department of Telecom, will focus on the sector’s growth and adopting next generation technology.

The DoT has started ground work for the policy and will start consultation with stakeholders as the industry is going through a tough phase due to financial stress and tariff war.

The government has already constituted an inter-ministerial group and has been holding meetings with stakeholders to discuss the issues related to the sector.

The group’s recommendation, which is expected soon, will help formulate a new policy by identifying areas that require urgent attention, a department official told Deccan Herald.

Though the government undertook a number of reforms according to the National Telecom Policy-2012, including full mobile number portability, rules for right to way for setting up telecom towers and delinking licence from spectrum, several features of the policy are yet to be achieved, including having 2 mbps speed, streamlining network rollout issues and formation of the National Mobile Property Registry. 

There is a huge challenge before the government to rescue the sector from financial stress. The industry debt has crossed a staggering Rs 4.75 lakh crore and banks have apprehended the possibility of default by the companies on their loan repayments.

The Telecom Regulatory Authority of India, too, had met the telecom companies recently to discuss the issues related to its financials where a telecom firm suggested imposition of a minimum floor price for voice and data services to prevent companies offering predatory pricing.

United against new entrant Reliance Jio, the three incumbent operators — Airtel, Vodafone and Idea Cellular — have demanded reduction in licence fee, spectrum usage charges and GST.

Jio, owned by Mukesh Ambani, ascribes the financial stress in the telecom sector to operators like Bharti Airtel and Idea investing heavily in unrelated sectors.