Reforms in Telecom Sector


The Ministry of Communications on December 16, 2022, notified regarding the reforms in Telecom Sector. The Government has approved various structural and procedural reforms in the telecom sector. These reforms include the following:

  1. Rationalization of Adjusted Gross Revenue, Rationalization of Bank Guarantees(BGs)
  2. Rationalization of interest rates and removal of penalties
  3. Dispensing with the requirement of BGs to secure installment payments
  4. Permission for the surrender of the spectrum after 10 years (in future auctions)
  5. Dispensing with the requirement of Spectrum Usage Charge (SUC) for spectrum acquired in spectrum auctions held after 15.09.2021
  6. Removal of additional SUC of 0.5% for spectrum sharing

The Government is implementing various schemes/projects under Universal Service Obligation Fund namely: 

• Left Wing Extremism (Phase-I &II) projects; 

• Aspirational Districts scheme; 

• Commissioning of Submarine Optical Fibre Cable connectivity from Chennai to Andaman &Nicobar Islands; 

• Scheme for connecting submarine Optical Fibre Cable from Kochi to Lakshadweep Islands; 

• BharatNet (Phase–I &II) projects; 

• Comprehensive Telecom Development Plan for mobile connectivity in the North Eastern Region; and 

• Provision of 4G mobile coverage in uncovered villages and seamless 4G mobile coverage of National Highway (NH – 223) in Andaman & Nicobar Islands etc.

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