Do you think that the relief cum reforms package of the central government is enough for the stressed telecom sector? Analyse (200 Words)
Refer - The Hindu
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· The extent of stress in the sector as well as the far-reaching economic consequences of protracted distress in the industry.
· The Government decided to offer telecom service providers the option of a four-year moratorium on the payment of outstanding AGR and spectrum purchase dues.
· The Government’s moratorium offer should relieve the burden of finding the funds to service these liabilities at the loss-making telco, giving it the space to focus on continuing to provide vital telecom services.
· The after-effects of the competitive in call and data tariffs are still being felt by the surviving operators and the issue of a floor price is one among many.
· To be sure, the Government has sought to address several anomalies in the policy regime including the definition of Adjusted Gross Revenue that had led to the large build-up of dues and protracted and ultimately pointless litigation.
· Non-telecom revenue will hereafter be excluded from the AGR, a long-standing demand from the telcos. The telcos would also not have to pay any spectrum usage charge for airwaves acquired in future auctions, could share spectrum without incurring any additional cost, and hold the airwaves acquired at an auction for 30 years instead of 20.
· Several procedural norms have also been simplified. Still, the prospects of the sector diminishing to a duopoly remain high.
Nivetha 3 years
please review
IAS Parliament 3 years
Good attempt. Kep Writing.
Manish 3 years
Please review !
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IAS Parliament 3 years
AGR definition is not required, try to provide a conclusion. Keep Writing.
