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Cabinet approves major reforms in Telecom Sector

  • Published
    20th Sep, 2021

GS-III: Economy

  • Economic Sector
Context

In a latest development, the Union Cabinet approved a number of structural and process reforms in the Telecom sector.

  • The objective behind these reforms is to protect and generate employment opportunities, promote healthy competition, protect interests of consumers, infuse liquidity, encourage investment and reduce regulatory burden on Telecom Service Providers (TSPs).

Prelims question:

With reference to telecom sector in India, consider the following statements:

  1. Adjusted Gross Revenue (AGR) includes all revenues earned by a telecom company – including from non-telecom sources.
  2. 100% foreign direct investment (FDI) under automatic route is permitted in telecom sector.
  3. Spectrum in India cannot be surrendered or shared.

Which of the above statement(s) is/are incorrect?

  • A.
  • B.
  • C.
  • D.

Mains Question:

The Telecom sector in India has the potential to usher in a new era for India’s digital ambitions. Discuss this in the context of recent broad-based reforms introduced by the government in the telecom sector. (150 Words)

Approach:

  • In the introduction, provide a brief definition of the Telecom sector
  • List the provisions of Telecom reforms introduced
  • Enumerate the potential benefits of these reforms
  • Enumerate the challenges that can be faced in successful implementation of reforms
  • Way Forward and Conclusion

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