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).
With reference to telecom sector in India, consider the following statements:
Adjusted Gross Revenue (AGR) includes all revenues earned by a telecom company – including from non-telecom sources.
100% foreign direct investment (FDI) under automatic route is permitted in telecom sector.
Spectrum in India cannot be surrendered or shared.
Which of the above statement(s) is/are incorrect?
Correct Option: C
Statement 1 is incorrect: The definition of Adjusted gross revenue (AGR) has recently been rationalized to exclude non-telecom revenues prospectively.
Statement 3 is incorrect: As part of structural reforms in the telecom sector, the Union Cabinet recently allowed spectrum to be surrendered or shared.
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)
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