New Delhi: Nearly 98 percent of the Indian population is covered by 4G network with mobile networks serving more than 115 crore subscribers (as of 31.12.2021).
Further, there has been a significant reduction in tariffs for voice and data since 2016 which also indicates presence of adequate competition in the telecom sector.
Consolidation in the telecom sector has resulted in optimum utilization of resources including the radio spectrum. The same is evident from the substantial increase in the number of telecom towers, network coverage, and subscriber base.
Even after the consolidation, there is sufficient competition in the sector as at least four Telecom Service Providers (TSPs) including one PSU (BSNL/MTNL) are present in each Licensed Service Area (LSA). The country is divided into 22 LSAs.
Minister of State for Communications, Devusinh Chauhan in a written reply to a question in Lok Sabha on Wednesday said that the Union Cabinet in its meeting held on 15.09.2021 has approved the proposal for rationalizing the definition of Gross Revenue/ Adjusted Gross Revenue (AGR), rationalizing of interest rates and removal of penalties, rationalizing Bank Guarantees requirements and permitting 100 percent FDI under automatic route in telecom sector subject to the Press Note 3 (2020 Series) guidelines regarding investments from countries sharing land-border with India.
These reforms are expected to promote healthy competition, infuse liquidity, encourage investment and reduce regulatory burden on Telecom Service Providers (TSPs), the reply added.
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