Airtel, Jio hail government's reforms for telecom industry
Mumbai/IBNS: The Union Cabinet on Wednesday approved a relief package for the stressed telecom sector which will give telecom companies more time to pay their long outstanding dues, including a four-year moratorium on spectrum installment which is due in April 2022.
Telecom minister Ashwini Vaishnav said the deferred payment cycle will begin from October 1.
The government and the telcos differed on the definition of AGR. Vaishnav said the government is changing the contentious definition of Adjusted Gross Revenue (AGR) liability to include only the telecoms revenue. Till now the government included all revenues from both telecom as well as non-telecom services in AGR.
Mukesh D Ambani, Chairman, Reliance Industries, said, “Telecom sector is one the prime movers of the economy and the key enabler for making India a Digital Society, I welcome the Government of India’s announcement of reforms and relief measures that will enable the industry to achieve the goals of Digital India. I thank Honourable Prime Minister for this bold initiative.”
Sunil Bharti Mittal, Chairman, Bharti Airtel said, “We congratulate and thank the Government, who under the decisive leadership of the Hon’ble Prime Minister Shri Narendra Modi, has undertaken these seminal reforms to lift an industry that’s at the core of his Digital India vision. The latest reforms ensure that the industry is able to invest fearlessly and support India’s digital ambitions. We also compliment the Hon’ble Minister of Communications and the Hon’ble Finance Minister for their leadership and support.”
Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel added, “For over two and a half decades, Bharti Airtel has pioneered India’s telecom revolution. These fresh reforms will further boost our efforts to invest in this exciting digital future and enable us to be one of the leading players in India’s digital economy. More needs to be done, however, towards a sustainable tariff regime to ensure the industry gets a fair return. This will, in turn, allow it to continue investing in new technologies and innovation to bring world-class services to customers.”
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