India’s telecom sector has witnessed a major transformation over the past decade, driven by the government’s vision of a digitally empowered nation, according to a report in the Economic Survey 2025–26. Policy efforts have focused on building a telecom ecosystem that is inclusive, developed, fast-moving, and secure, with an emphasis on universal connectivity and rapid technological adoption.&nbsp;The sector’s growth is reflected in rising tele-density, which increased from 75.23 per cent to 86.76 per cent, helping narrow the digital divide between rural and urban areas. A sharp fall in wireless data tariffs has fuelled a surge in average monthly data consumption, underlining the importance of affordability in mass digital adoption. The survey also notes that 5G services are now available in 99.9 per cent of districts across the country, marking a significant milestone in India’s digital infrastructure expansion.<h3>The telecom sector comes under the production-linked incentive (PLI)&nbsp;</h3>The notable success of India’s telecom sector comes under the production-linked incentive (PLI) scheme, as exports rose by 1.5 per cent average annual growth rate (AAGR) between FY21 and FY25. By contrast, imports fell by 18.5 per cent during the same point of time.&nbsp;To foster domestic manufacturing of telecom gear, the PLI scheme was launched in 2021 with an outlay of Rs 12,195 crore, which has attracted more than Rs 4,700 crore in investments. This enabled more than Rs 1,00,000 crore sales, including Rs 21,000 crore exports, and also generated nearly 30,000 jobs. The telecom equipment exports in the fiscal year 2025 (FY25) alone rose by 51.2 per cent year-on-year, as per the document.&nbsp;“This trend indicates an early accomplishment in import substitution, aligning with the PLI framework's overarching objective of enhancing market penetration abroad,” the document, published ahead of Finance Minister Nirmala Sitharaman’s union budget announcement on February 1 (Sunday), said.&nbsp;Also read: <a href="https://www.wionews.com/business-economy/gold-surges-past-5-500-silver-tops-120-amid-iran-tensions-us-fed-pause-and-weakening-dollar-1769682949030">Gold surges past $5,500, silver tops $120 amid Iran tensions, US Fed pause and weakening dollar</a>

The survey also notes that 5G services are now available in 99.9 per cent of districts across the country, marking a significant milestone in India’s digital infrastructure expansion.

India’s telecom sector has witnessed a major transformation over the past decade, driven by the government’s vision of a digitally empowered nation, according to a report in the Economic Survey 2025–26. Policy efforts have focused on building a telecom ecosystem that is inclusive, developed, fast-moving, and secure, with an emphasis on universal connectivity and rapid technological adoption. The sector’s growth is reflected in rising tele-density, which increased from 75.23 per cent to 86.76 per cent, helping narrow the digital divide between rural and urban areas. A sharp fall in wireless data tariffs has fuelled a surge in average monthly data consumption, underlining the importance of affordability in mass digital adoption. The survey also notes that 5G services are now available in 99.9 per cent of districts across the country, marking a significant milestone in India’s digital infrastructure expansion. The telecom sector comes under the production-linked incentive (PLI) The notable success of India’s telecom sector comes under the production-linked incentive (PLI) scheme, as exports rose by 1.5 per cent average annual growth rate (AAGR) between FY21 and FY25. By contrast, imports fell by 18.5 per cent during the same point of time. To foster domestic manufacturing of telecom gear, the PLI scheme was launched in 2021 with an outlay of Rs 12,195 crore, which has attracted more than Rs 4,700 crore in investments. This enabled more than Rs 1,00,000 crore sales, including Rs 21,000 crore exports, and also generated nearly 30,000 jobs. The telecom equipment exports in the fiscal year 2025 (FY25) alone rose by 51.2 per cent year-on-year, as per the document. “This trend indicates an early accomplishment in import substitution, aligning with the PLI framework's overarching objective of enhancing market penetration abroad,” the document, published ahead of Finance Minister Nirmala Sitharaman’s union budget announcement on February 1 (Sunday), said. Also read: Gold surges past $5,500, silver tops $120 amid Iran tensions, US Fed pause and weakening dollar

The survey also notes that 5G services are now available in 99.9 per cent of districts across the country, marking a significant milestone in India’s digital infrastructure expansion.

5G in 99.9% districts, data cheaper than ever: How India’s telecom sector transformed in a decade

India’s federal cabinet on Wednesday approved an aid package for its cash-strapped telecommunications sector, including a four-year moratorium on radio wave payments owed to the government, the country’s telecommunications minister said.

The deferred payment cycle will begin in October. On January 1, Telecom Minister Ashwini Vaishnaw said at a press conference, giving Debt-burdened Vodafone Idea, which previously said it risks a shutdown without government help, more time to pay off bills. dues.

Vodafone Idea shares rose 2.9 per cent on the news, while Bharti Airtel closed 4.5 per cent in a broader Mumbai market that closed 0.8 per cent higher.

Bharti Airtel and Reliance Jio said the move will boost growth in the telecommunications industry. Vodafone Idea did not respond to a request for comment.

India’s telecoms sector struggled in late 2016 with the entry of billionaire Mukesh Ambani Reliance Jio, sparking a price war that forced some rivals to exit the market and turned profits into losses.

Vaishnaw said the government was changing the controversial definition of adjusted gross income (AGR) to count only telecommunications income.

India had long argued that even companies’ non-telecom revenue was part of AGR, leading to a lengthy legal battle that culminated in 2019 with the Supreme Court sided with government opinion and led to a hefty bill of approximately $ 13 billion for wireless carriers. .

All telecom reforms will apply in the future and not retroactively, Vaishnaw said, meaning that Indian operators have yet to settle billions of dollars in outstanding AGR payments to the government.

Respect for the idea of Vodafone

The measures, which also include a four-year deferral in the payment of AGR dues, will likely alleviate the cash crisis at Vodafone Idea.

The Supreme Court had ordered the companies to settle AGR quotas by 2031.

Vodafone Idea, a combination of Britain’s Vodafone Group’s Indian unit and the national telecommunications firm Idea Cellular, has paid the government $ 1.07 billion(78.54 billion rupees) in AGR installments, but still owes roughly 500 billion.

It has a net debt of 1.91 trillion rupees and the resignation of its billionaire president last month sparked fears that India could be left with just two major operators.

On Wednesday, Vaishnaw said the government did not want a duopoly.

"We believe that there must be healthy competition in the sector. And for that there will be more reforms when the 5G spectrum is auctioned … so that more and more players can enter this sector," said Vaishnaw.

Bharti Airtel has said he paid fees estimated at Rs 180 billion and government figures show he owes another Rs 259.76 billion.

India’s newest operator, Reliance Jio, has already paid its small share of AGR’s fees.

The cabinet also allowed 100 per cent foreign direct investment in the sector through the automatic route, Vaishnaw said, a move that will allow easy investment in the sector without independent government approvals.

The measures announced in the telecommunications package include increasing the tenure of radio waves in the hands of companies to 30 years from the current 20 years, eliminating the charge for use of radio waves acquired through future auctions and sharing the spectrum completely free to operators, Vaishnaw said.

"The relief comes just in time and, at the very least, it will help telecommunications companies navigate the market," said Sonam Chandwani, managing partner at the law firm KS Legal &amp; Associates.

India’s federal cabinet on Wednesday approved an aid package for its cash-strapped telecommunications sector, including a four-year moratorium on radio wave payments owed to the government, the country’s telecommunications minister said.

India’s federal cabinet on Wednesday approved an aid package for its cash-strapped telecommunications sector, including a four-year moratorium on radio wave payments owed to the government, the country’s telecommunications minister said. The deferred payment cycle will begin in October. On January 1, Telecom Minister Ashwini Vaishnaw said at a press conference, giving Debt-burdened Vodafone Idea, which previously said it risks a shutdown without government help, more time to pay off bills. dues. Vodafone Idea shares rose 2.9 per cent on the news, while Bharti Airtel closed 4.5 per cent in a broader Mumbai market that closed 0.8 per cent higher. Bharti Airtel and Reliance Jio said the move will boost growth in the telecommunications industry. Vodafone Idea did not respond to a request for comment. India’s telecoms sector struggled in late 2016 with the entry of billionaire Mukesh Ambani Reliance Jio, sparking a price war that forced some rivals to exit the market and turned profits into losses. Vaishnaw said the government was changing the controversial definition of adjusted gross income (AGR) to count only telecommunications income. India had long argued that even companies’ non-telecom revenue was part of AGR, leading to a lengthy legal battle that culminated in 2019 with the Supreme Court sided with government opinion and led to a hefty bill of approximately $ 13 billion for wireless carriers. . All telecom reforms will apply in the future and not retroactively, Vaishnaw said, meaning that Indian operators have yet to settle billions of dollars in outstanding AGR payments to the government. Respect for the idea of Vodafone The measures, which also include a four-year deferral in the payment of AGR dues, will likely alleviate the cash crisis at Vodafone Idea. The Supreme Court had ordered the companies to settle AGR quotas by 2031. Vodafone Idea, a combination of Britain’s Vodafone Group’s Indian unit and the national telecommunications firm Idea Cellular, has paid the government $ 1.07 billion(78.54 billion rupees) in AGR installments, but still owes roughly 500 billion. It has a net debt of 1.91 trillion rupees and the resignation of its billionaire president last month sparked fears that India could be left with just two major operators. On Wednesday, Vaishnaw said the government did not want a duopoly. "We believe that there must be healthy competition in the sector. And for that there will be more reforms when the 5G spectrum is auctioned … so that more and more players can enter this sector," said Vaishnaw. Bharti Airtel has said he paid fees estimated at Rs 180 billion and government figures show he owes another Rs 259.76 billion. India’s newest operator, Reliance Jio, has already paid its small share of AGR’s fees. The cabinet also allowed 100 per cent foreign direct investment in the sector through the automatic route, Vaishnaw said, a move that will allow easy investment in the sector without independent government approvals. The measures announced in the telecommunications package include increasing the tenure of radio waves in the hands of companies to 30 years from the current 20 years, eliminating the charge for use of radio waves acquired through future auctions and sharing the spectrum completely free to operators, Vaishnaw said. "The relief comes just in time and, at the very least, it will help telecommunications companies navigate the market," said Sonam Chandwani, managing partner at the law firm KS Legal & Associates.

India announces measures to prop up telecom sector; respite for Vodafone Idea

Indian telecom Czar and chairman of Bharti Airtel Sunil Bharti Mittal, Has said that the telecom tariff hike is needed in India as current rates are unsustainable now. But market conditions will be seen before a call on tariff hike is taken.

India: Bharti Airtel chairman Sunil Mittal calls current tariffs 'unsustainable'

India's telecom sector is facing a huge financial crisis in trying to pay thousands of crores in dues. The Supreme Court has lashed out at telecom giants for non-payment and declared that no re-evaluation of dues will be allowed. WION's Palki Sharma tells you more.

Gravitas: Legal trouble for India's telecom sector

Disruption-the term and practice in vogue- in the business world is usually associated with startups. The ‘story’ goes as: Young and dynamic startup firms disaggregate the value chains of existing industries or firms, find a niche and build a robust business. (The problems usually associated with startups are that of scaling up). But contra the prevailing and conventional wisdom, established firms- especially conglomerates, can be disruptive too.&nbsp;

One example of a conglomerate disrupting an industry is Reliance that essentially totally disrupted India’s telecommunications industry leaving competitors scrambling.

Before dwelling on the nature and form of Reliance’s disruption of the telecommunications industry, it may be useful to recall some concepts and practices that pertain to conglomerates. Often times, these firms, in an attempt to expand took recourse to vertical integration (VI). This meant buying and owning both or either upstream and downstream activities of the industry. The well-known example of VI is that of oil firms. Many big ones like Exxon, Shell, bought and owned but the input, supply and refining side of the industry and the upstream one of retailing.&nbsp;

These firms kept these aspects and functions in the house with the aim of efficiency, effectiveness, cost savings, and economies of scale.

While the rationale of VI sounds eminently sensible, but barring episodic attempts at this in the 1970s and 1960s, the overall success of conglomerates is debatable. Obiter dictum, it is held that conglomerates work well mostly in developed or emerging economy contexts.

Another strategy that firms usually of a larger size took recourse to was diversification. The rationale and the premise was growth and expansion. Diversification could be related or unrelated. With respect to the former, a given firm diversified into a related industry and in terms of the former, the diversification was totally unrelated. The doyens of business and industry held that related diversification offered a greater opportunity as opposed to unrelated diversification.

Against the generic backdrop of vertical integration, conglomerates, related and unrelated diversification, it is interesting to posit Reliance’s strategy of being all of the above and disrupting the Indian telecommunications industry. How did the firm do it?

It would appear that Reliance – being a family-controlled conglomerate- created an internal capital market, aggregated cash flows from its extant (sometimes unrelated businesses) and ploughed them into its telecommunications arm, Reliance Jio. Essentially, the firms cross-subsidised Reliance Jio from its various businesses. With such ‘deep pockets’, Reliance not merely took on extant competition in the telecommunications space but created what Chan Kim and Renee Mauborgne, in their book, ‘Blue Ocean Strategy’ call uncontested market space by making the competition irrelevant. While some competition in the Indian telco space exists like Airtel and some other minor players, but these firms are totally on the defensive and struggling to catch-up with Reliance Jio. In this sense, Reliance strategy does not entirely fit Chan Kim’s and Mauborgne’s premise but approximates it.

Reliance made both data services and calling extremely cheap forcing incumbents and competitors to catch up. The only option left for incumbents was to engage in a price war with Reliance Jio, but they could only do this at great cost to themselves. While Reliance could absorb initial losses with the aim of gaining and capturing market share from competitors, for the incumbents it could only mean bleeding extensively in the rules of the game set and created by Reliance. While at some point in time Reliance Jio will raise the Average Revenue per User (ARPU), but for now for its competitors, it was a blood bath as more likely than not competitors like Airtel match or craft a new strategy to overcome Reliance -which seems unlikely. Shorn of something drastic, Reliance Jio is likely to emerge as the leader in the telco space of India, if it already has not.

The key takeaway or even lesson of the disruption caused by Reliance strategy is that disruption can also be caused by established players – even conglomerates. And that it is not only the prerogative of startups. If, ultimately, the name of the game in a given industry, by a given firm, is to create value, the disruption could be a viable strategy for large firms and might be even more potent given that these firms, by virtue of deep pockets, can scale up faster and without hassles than startups. All this is not to discredit startups.&nbsp;

They remain important in their own right especially as drivers of innovation and path-breaking practices. It is only that disruption can be taken recourse to by conglomerates as well. Reliance Jio and its disruption of the telco space proves the point. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp;

Disruption-the term and practice in vogue- in the business world is usually associated with startups. The ‘story’ goes as: Young and dynamic startup firms disaggregate the value chains of existing industries or firms, find a niche and build a robust business.

Disruption-the term and practice in vogue- in the business world is usually associated with startups. The ‘story’ goes as: Young and dynamic startup firms disaggregate the value chains of existing industries or firms, find a niche and build a robust business. (The problems usually associated with startups are that of scaling up). But contra the prevailing and conventional wisdom, established firms- especially conglomerates, can be disruptive too. One example of a conglomerate disrupting an industry is Reliance that essentially totally disrupted India’s telecommunications industry leaving competitors scrambling. Before dwelling on the nature and form of Reliance’s disruption of the telecommunications industry, it may be useful to recall some concepts and practices that pertain to conglomerates. Often times, these firms, in an attempt to expand took recourse to vertical integration (VI). This meant buying and owning both or either upstream and downstream activities of the industry. The well-known example of VI is that of oil firms. Many big ones like Exxon, Shell, bought and owned but the input, supply and refining side of the industry and the upstream one of retailing. These firms kept these aspects and functions in the house with the aim of efficiency, effectiveness, cost savings, and economies of scale. While the rationale of VI sounds eminently sensible, but barring episodic attempts at this in the 1970s and 1960s, the overall success of conglomerates is debatable. Obiter dictum, it is held that conglomerates work well mostly in developed or emerging economy contexts. Another strategy that firms usually of a larger size took recourse to was diversification. The rationale and the premise was growth and expansion. Diversification could be related or unrelated. With respect to the former, a given firm diversified into a related industry and in terms of the former, the diversification was totally unrelated. The doyens of business and industry held that related diversification offered a greater opportunity as opposed to unrelated diversification. Against the generic backdrop of vertical integration, conglomerates, related and unrelated diversification, it is interesting to posit Reliance’s strategy of being all of the above and disrupting the Indian telecommunications industry. How did the firm do it? It would appear that Reliance – being a family-controlled conglomerate- created an internal capital market, aggregated cash flows from its extant (sometimes unrelated businesses) and ploughed them into its telecommunications arm, Reliance Jio. Essentially, the firms cross-subsidised Reliance Jio from its various businesses. With such ‘deep pockets’, Reliance not merely took on extant competition in the telecommunications space but created what Chan Kim and Renee Mauborgne, in their book, ‘Blue Ocean Strategy’ call uncontested market space by making the competition irrelevant. While some competition in the Indian telco space exists like Airtel and some other minor players, but these firms are totally on the defensive and struggling to catch-up with Reliance Jio. In this sense, Reliance strategy does not entirely fit Chan Kim’s and Mauborgne’s premise but approximates it. Reliance made both data services and calling extremely cheap forcing incumbents and competitors to catch up. The only option left for incumbents was to engage in a price war with Reliance Jio, but they could only do this at great cost to themselves. While Reliance could absorb initial losses with the aim of gaining and capturing market share from competitors, for the incumbents it could only mean bleeding extensively in the rules of the game set and created by Reliance. While at some point in time Reliance Jio will raise the Average Revenue per User (ARPU), but for now for its competitors, it was a blood bath as more likely than not competitors like Airtel match or craft a new strategy to overcome Reliance -which seems unlikely. Shorn of something drastic, Reliance Jio is likely to emerge as the leader in the telco space of India, if it already has not. The key takeaway or even lesson of the disruption caused by Reliance strategy is that disruption can also be caused by established players – even conglomerates. And that it is not only the prerogative of startups. If, ultimately, the name of the game in a given industry, by a given firm, is to create value, the disruption could be a viable strategy for large firms and might be even more potent given that these firms, by virtue of deep pockets, can scale up faster and without hassles than startups. All this is not to discredit startups. They remain important in their own right especially as drivers of innovation and path-breaking practices. It is only that disruption can be taken recourse to by conglomerates as well. Reliance Jio and its disruption of the telco space proves the point. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

How Reliance Industries strategised its growth in the telecom sector

After a Supreme Court rap for missing payment deadline, top telecom firms Bharti Airtel, Vodafone Idea and Tata Teleservices on Monday scrambled to pay a part of the outstanding dues even as the apex court refused to stop the government from taking coercive action for any further delay in clearing full dues.

While Airtel paid Rs 10,000 crore, Vodafone Idea Ltd put in Rs 2,500 crore and promised to pay another Rs 1,000 crore before the end of the week. Tata Teleservices Ltd paid Rs 2,197 crore, the entire outstanding it believes to have arisen after the October 24 ruling of the apex court for calculating dues after adding non-telecom revenues.

The Department of Telecommunications (DoT), which was last week rapped on the knuckles for ordering no coercive action even after telcos missed the January 23 payment deadline set by the Supreme Court, is mulling the option of encashing bank guarantees given by firms when they got telecom licences, sources said.

Encashing of the bank guarantees may sound the death knell for companies such as Vodafone Idea Ltd which has been struggling to garner the dues. 
In a related development, the telecom companies started disputing the DoT estimate of the due amount and indicated they will pay as per their 'self-assessment'.

Also read: <a href="https://www.wionews.com/india-news/the-telecom-story-consequences-of-supreme-courts-ruling-281215">The telecom tremors - Consequences of Supreme Court's ruling</a>

The telecom department officials will meet on Tuesday to discuss whether or not the bank guarantees should be encashed, as none of the telcos has paid the full payment.

Sources said that the option of encashment of bank guarantees is being considered and that "nothing is off the table". A decision on the matter may be taken on Tuesday, the source added.

Separately, Reserve Bank of India (RBI) Governor Shaktikanta Das in an interview to PTI said that the central bank is "very closely monitoring" the fallout of the crisis on lenders.

In the Supreme Court, senior advocate Mukul Rohatgi, appearing on behalf of Vodafone Idea, urged for no coercive action after the initial payment of Rs 2,500 crore is made by the end of the day and another Rs 1,000 crore by Friday. The apex court rejected the plea, giving room to DoT to take coercive action including encashment of the bank guarantees.

A financial bank guarantee is equal to two quarters of licence fee and other dues. This amount could be in the range of Rs 5,000 crore for Airtel and Vodafone Idea.

Meanwhile, Oil Minister Dharmendra Pradhan on Monday said he believes non-telecom PSUs are not covered by the Supreme Court order that asked telecom licence holders to pay statutory dues after including non-telecom revenues.

Following the October 24 Supreme Court ruling that non-telecom revenues of telecom firms such as Bharti Airtel and Vodafone Idea should be included for considering payments of government dues, the telecom department sought Rs 1.83 lakh crore from gas utility GAIL India Ltd, about Rs 48,500 crore from OIL, Rs 21,953.65 crore from Power Grid Corp and Rs 15,020 crore from Gujarat Narmada Valley Fertilizers &amp; Chemicals Ltd.

The government's demand from such companies was many times more than their net worth.

"The DoT has served notice to government oil companies due to some communication gap. We have placed our side after doing all legal consultations," Pradhan said adding telecom was not a core business for these PSUs.

The Supreme Court last week rejected a plea by mobile carriers such as Bharti Airtel and Vodafone Idea Ltd for extension in the payment schedule and asked them to deposit an estimated Rs 1.47 lakh crore in past dues for spectrum and licences. It threatened to initiate contempt proceedings against top executives of these firms for non-payment.

Some telecom firms are already struggling with mounting losses and debt and the additional liability has raised concerns of them defaulting on existing loans.

Of the estimated dues that include interest and penalty for late payments, Airtel and Vodafone Idea owe about 60 per cent.

While Airtel on Monday paid Rs 10,000 crore out of the Rs 35,586 crore dues that DoT thinks the company owes to the government, Vodafone Idea paid Rs 2,500 crore and promised to pay another Rs 1,000 crore by Friday to clear a part of the DoT estimated dues of Rs 53,000 crore.

Airtel said it will clear the remaining dues before the next date of hearing on March 17 but Vodafone Idea has so far not provided a clear deadline for making further payments.

"Tata Teleservices Ltd and Tata Teleservices (Maharashtra) Ltd have made a payment of Rs 2,197 crore to the DoT towards license fee and spectrum usage charges," the company said in a statement.

The payment is to settle all its AGR outstanding.

"TTSL and TTML have also submitted to DoT the details of calculations in support of the payment," it said.

In a regulatory filing, Bharti Airtel said it has paid "an amount of Rs 10,000 crore to the DoT" which includes an amount on behalf of Telenor India (the firm which merged with the company) and Rs 500 crore on behalf of Bharti Hexacom Limited, a subsidiary.

"The company is in a process of completing the self-assessment exercise expeditiously and will make the balance payment upon completion of the same, before the next date of hearing in the Supreme Court," it added.

In a separate statement, Vodafone Idea Ltd said its authorised the company to pay Rs 2,500 crore immediately and another Rs 1,000 crore before the end of the week.

"The board will take further stock of the situation to see how further additional payments can be made," the company said in a regulatory filing.

After a Supreme Court rap for missing payment deadline, top telecom firms Bharti Airtel, Vodafone Idea and Tata Teleservices on Monday scrambled to pay a part of the outstanding dues even as the apex court refused to stop the government from taking coercive action for any further delay in clearing full dues.

After a Supreme Court rap for missing payment deadline, top telecom firms Bharti Airtel, Vodafone Idea and Tata Teleservices on Monday scrambled to pay a part of the outstanding dues even as the apex court refused to stop the government from taking coercive action for any further delay in clearing full dues. While Airtel paid Rs 10,000 crore, Vodafone Idea Ltd put in Rs 2,500 crore and promised to pay another Rs 1,000 crore before the end of the week. Tata Teleservices Ltd paid Rs 2,197 crore, the entire outstanding it believes to have arisen after the October 24 ruling of the apex court for calculating dues after adding non-telecom revenues. The Department of Telecommunications (DoT), which was last week rapped on the knuckles for ordering no coercive action even after telcos missed the January 23 payment deadline set by the Supreme Court, is mulling the option of encashing bank guarantees given by firms when they got telecom licences, sources said. Encashing of the bank guarantees may sound the death knell for companies such as Vodafone Idea Ltd which has been struggling to garner the dues. In a related development, the telecom companies started disputing the DoT estimate of the due amount and indicated they will pay as per their 'self-assessment'. Also read: The telecom tremors - Consequences of Supreme Court's ruling The telecom department officials will meet on Tuesday to discuss whether or not the bank guarantees should be encashed, as none of the telcos has paid the full payment. Sources said that the option of encashment of bank guarantees is being considered and that "nothing is off the table". A decision on the matter may be taken on Tuesday, the source added. Separately, Reserve Bank of India (RBI) Governor Shaktikanta Das in an interview to PTI said that the central bank is "very closely monitoring" the fallout of the crisis on lenders. In the Supreme Court, senior advocate Mukul Rohatgi, appearing on behalf of Vodafone Idea, urged for no coercive action after the initial payment of Rs 2,500 crore is made by the end of the day and another Rs 1,000 crore by Friday. The apex court rejected the plea, giving room to DoT to take coercive action including encashment of the bank guarantees. A financial bank guarantee is equal to two quarters of licence fee and other dues. This amount could be in the range of Rs 5,000 crore for Airtel and Vodafone Idea. Meanwhile, Oil Minister Dharmendra Pradhan on Monday said he believes non-telecom PSUs are not covered by the Supreme Court order that asked telecom licence holders to pay statutory dues after including non-telecom revenues. Following the October 24 Supreme Court ruling that non-telecom revenues of telecom firms such as Bharti Airtel and Vodafone Idea should be included for considering payments of government dues, the telecom department sought Rs 1.83 lakh crore from gas utility GAIL India Ltd, about Rs 48,500 crore from OIL, Rs 21,953.65 crore from Power Grid Corp and Rs 15,020 crore from Gujarat Narmada Valley Fertilizers & Chemicals Ltd. The government's demand from such companies was many times more than their net worth. "The DoT has served notice to government oil companies due to some communication gap. We have placed our side after doing all legal consultations," Pradhan said adding telecom was not a core business for these PSUs. The Supreme Court last week rejected a plea by mobile carriers such as Bharti Airtel and Vodafone Idea Ltd for extension in the payment schedule and asked them to deposit an estimated Rs 1.47 lakh crore in past dues for spectrum and licences. It threatened to initiate contempt proceedings against top executives of these firms for non-payment. Some telecom firms are already struggling with mounting losses and debt and the additional liability has raised concerns of them defaulting on existing loans. Of the estimated dues that include interest and penalty for late payments, Airtel and Vodafone Idea owe about 60 per cent. While Airtel on Monday paid Rs 10,000 crore out of the Rs 35,586 crore dues that DoT thinks the company owes to the government, Vodafone Idea paid Rs 2,500 crore and promised to pay another Rs 1,000 crore by Friday to clear a part of the DoT estimated dues of Rs 53,000 crore. Airtel said it will clear the remaining dues before the next date of hearing on March 17 but Vodafone Idea has so far not provided a clear deadline for making further payments. "Tata Teleservices Ltd and Tata Teleservices (Maharashtra) Ltd have made a payment of Rs 2,197 crore to the DoT towards license fee and spectrum usage charges," the company said in a statement. The payment is to settle all its AGR outstanding. "TTSL and TTML have also submitted to DoT the details of calculations in support of the payment," it said. In a regulatory filing, Bharti Airtel said it has paid "an amount of Rs 10,000 crore to the DoT" which includes an amount on behalf of Telenor India (the firm which merged with the company) and Rs 500 crore on behalf of Bharti Hexacom Limited, a subsidiary. "The company is in a process of completing the self-assessment exercise expeditiously and will make the balance payment upon completion of the same, before the next date of hearing in the Supreme Court," it added. In a separate statement, Vodafone Idea Ltd said its authorised the company to pay Rs 2,500 crore immediately and another Rs 1,000 crore before the end of the week. "The board will take further stock of the situation to see how further additional payments can be made," the company said in a regulatory filing.

Airtel, Voda, Idea make part payment; DoT mulls encashing bank guarantees

Equity benchmark indices <a href="https://www.wionews.com/business-economy/nifty-sensex-fall-as-telecom-exposure-weighs-on-banks-281144">Sensex </a>and <a href="https://www.wionews.com/business-economy/nifty-sensex-fall-as-telecom-exposure-weighs-on-banks-281144">Nifty</a> closed in the red for the fourth session in a row on Tuesday as the ongoing AGR issue weighed on telecom and financial stocks.

After trading in the deep red for a better part of the session, the BSE gauge Sensex reclaimed most of its lost ground towards the fag-end.

Also read: <a href="https://www.wionews.com/business-economy/airtel-voda-idea-make-part-payment-dot-mulls-encashing-bank-guarantees-281229">Airtel, Voda, Idea make part payment; DoT mulls encashing bank guarantees</a>

At the closing bell, the index was down 161.31 points or 0.39 per cent at 40,894.38.

Intra-day, the Sensex fell over 444 points and touched the day's low of 40,610.95.

The NSE barometer Nifty too staged a late recovery from the day's low and settled at 11,992.50, showing a fall of 53.30 points or 0.44 per cent.

On the Sensex chart, <a href="https://www.wionews.com/business-economy/airtel-voda-idea-make-part-payment-dot-mulls-encashing-bank-guarantees-281229">Bharti Airtel</a> was the biggest loser with nearly 3 per cent drop in its share price. It was followed by IndusInd Bank, Maruti Suzuki, HeroMoto Corp and Tata Steel.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/the-telecom-story-consequences-of-supreme-courts-ruling-281215">The telecom tremors: Consequences of Supreme Court's ruling</a>

In contrast, SBI, Infosys, PowerGrid, Tech Mahindra and TCS featured among major gainers.

The <a href="https://www.wionews.com/india-news/the-telecom-story-consequences-of-supreme-courts-ruling-281215">Supreme Court</a> on Monday refused to stop the telecom department from taking any coercive steps for recovery of dues from Vodafone Idea.

Shares of <a href="https://www.wionews.com/business-economy/airtel-voda-idea-make-part-payment-dot-mulls-encashing-bank-guarantees-281229">Vodafone Idea</a> on Tuesday tanked more than 16 per cent in intra-day trade due to rating downgrade on <a href="https://www.wionews.com/india-news/the-telecom-story-consequences-of-supreme-courts-ruling-281215">AGR</a> dues and other issues of the company.

Asian markets, barring China, closed with heavy losses.

Meanwhile, worries over the rising death toll and the economic fallout from the novel coronavirus continued to haunt investors globally.

The coronavirus epidemic that emerged in central China has now killed nearly 1,800 people and spread around the world.

The death toll from China's coronavirus epidemic climbed to 1,868 on Tuesday as 98 more people died while the total number of confirmed cases jumped to 72,436.&nbsp;

Equity benchmark indices Sensex and Nifty closed in the red for the fourth session in a row on Tuesday as the ongoing AGR issue weighed on telecom and financial stocks.

Equity benchmark indices Sensex and Nifty closed in the red for the fourth session in a row on Tuesday as the ongoing AGR issue weighed on telecom and financial stocks. After trading in the deep red for a better part of the session, the BSE gauge Sensex reclaimed most of its lost ground towards the fag-end. Also read: Airtel, Voda, Idea make part payment; DoT mulls encashing bank guarantees At the closing bell, the index was down 161.31 points or 0.39 per cent at 40,894.38. Intra-day, the Sensex fell over 444 points and touched the day's low of 40,610.95. The NSE barometer Nifty too staged a late recovery from the day's low and settled at 11,992.50, showing a fall of 53.30 points or 0.44 per cent. On the Sensex chart, Bharti Airtel was the biggest loser with nearly 3 per cent drop in its share price. It was followed by IndusInd Bank, Maruti Suzuki, HeroMoto Corp and Tata Steel. Also read: The telecom tremors: Consequences of Supreme Court's ruling In contrast, SBI, Infosys, PowerGrid, Tech Mahindra and TCS featured among major gainers. The Supreme Court on Monday refused to stop the telecom department from taking any coercive steps for recovery of dues from Vodafone Idea. Shares of Vodafone Idea on Tuesday tanked more than 16 per cent in intra-day trade due to rating downgrade on AGR dues and other issues of the company. Asian markets, barring China, closed with heavy losses. Meanwhile, worries over the rising death toll and the economic fallout from the novel coronavirus continued to haunt investors globally. The coronavirus epidemic that emerged in central China has now killed nearly 1,800 people and spread around the world. The death toll from China's coronavirus epidemic climbed to 1,868 on Tuesday as 98 more people died while the total number of confirmed cases jumped to 72,436.

Sensex, Nifty clock 4th successive loss; AGR woes hit telecom, financial stocks

The Indian telecom industry is under duress after the Supreme Court came down heavily on telecom companies for not paying dues on time to the government.

The judges accused the telcos of "contempt of court". Even the telecom department officials were rebuked.

Now, three telecom companies must pay a very heavy bill together worth Rupees one lakh crore.&nbsp;

Here's all you need to know about the consequences of the ruling:&nbsp;

<img alt="telecom" data-entity-type="file" data-entity-uuid="946f8642-b077-4f3e-99dd-727b835c255c" src="//cdn.wionews.com/sites/default/files/inline-images/WHO_OWES_WHAT01.jpg" />

The telecom industry is reeling under the slam of the Supreme Court's gavel. Two top telecom companies must pay up a total of 85,000 crore rupees in dues to the government. The order will have severe economic consequences.

Vodafone Idea could shut down, causing over 13,000 people to lose their jobs. The number could be higher if we include all those who run "recharge shops" across the country. Plus, the mobile bill of customers may shoot up.&nbsp;

<img alt="telecom" data-entity-type="file" data-entity-uuid="7595bcda-9899-49d8-a5e5-1df1a2b25f94" src="//cdn.wionews.com/sites/default/files/inline-images/WHO_OWES_WHAT02.jpg" />

Consumers may have to pay substantially more for their mobile data packs and voice calls because of the stress.

The top court had set a January 23 as the deadline. It has pulled up the government for not enforcing the deadline.

Another telecom giant, Bharti Airtel, owes Rupees 35,000 crore, while Vodafone Idea owes over 50,000 crores.&nbsp;

<img alt="telecom" data-entity-type="file" data-entity-uuid="a10139cf-b27e-4769-8b4b-4f5953725ea9" src="//cdn.wionews.com/sites/default/files/inline-images/SC_DIRECTIVE01.jpg" />

The companies must pay the sum by March 17.&nbsp;

The telecom giants have paid some of the money and have sought more time for the rest.

But why do these companies have to pay such massive dues?&nbsp;

<img alt="telecom" data-entity-type="file" data-entity-uuid="24989933-83c8-4200-a37a-0c0eedb5c057" src="//cdn.wionews.com/sites/default/files/inline-images/SC_DIRECTIVE02.jpg" />

The legal conflict is around 14 years old. The dispute is over the definition of revenue. The worst-hit is Vodafone Idea which is saddled with mounting losses and debt and owes the biggest chunk to the government. The company says it will collapse if the government does not give any relief.

The collapse of Vodafone Idea would make it the third bankruptcy of a local mobile carrier in two years after that of Aircel and Rcom.

It all started with the arrival of Mukesh Ambani's Reliance Jio, which slashed the existing mobile data prices to an extent that India today offers the world's cheapest mobile data packs.

&nbsp;<img alt="telecom" data-entity-type="file" data-entity-uuid="6e0b486e-9b05-4f7b-8fb8-9454b0902ace" src="//cdn.wionews.com/sites/default/files/inline-images/SC_DIRECTIVE03.jpg" />

Once Jio did it, others had to follow thus dipping their hands to the bottom of their coffers to stay competitive.

Meanwhile, data-hungry Indian consumers became more demanding, pushing the companies into a data war.&nbsp;

<img alt="telecom" data-entity-type="file" data-entity-uuid="982e6a09-df78-4902-8692-a40dfc0cc77d" src="//cdn.wionews.com/sites/default/files/inline-images/SC_DIRECTIVE04_UPDATED.SLIDE_.jpg" />

The Supreme Court ruling will change all this.&nbsp;

In order to pay the dues, telecom operators could raise the tariffs by 25 to 30 per cent by the end of the year.&nbsp; 
&nbsp; 
So, young India will now begin to feel the pinch, as they begin to shell out more for less data.

The Indian telecom industry is under duress after the Supreme Court came down heavily on telecom companies for not paying dues on time to the government. The judges accused the telcos of "contempt of court".

The Indian telecom industry is under duress after the Supreme Court came down heavily on telecom companies for not paying dues on time to the government. The judges accused the telcos of "contempt of court". Even the telecom department officials were rebuked. Now, three telecom companies must pay a very heavy bill together worth Rupees one lakh crore. Here's all you need to know about the consequences of the ruling: The telecom industry is reeling under the slam of the Supreme Court's gavel. Two top telecom companies must pay up a total of 85,000 crore rupees in dues to the government. The order will have severe economic consequences. Vodafone Idea could shut down, causing over 13,000 people to lose their jobs. The number could be higher if we include all those who run "recharge shops" across the country. Plus, the mobile bill of customers may shoot up. Consumers may have to pay substantially more for their mobile data packs and voice calls because of the stress. The top court had set a January 23 as the deadline. It has pulled up the government for not enforcing the deadline. Another telecom giant, Bharti Airtel, owes Rupees 35,000 crore, while Vodafone Idea owes over 50,000 crores. The companies must pay the sum by March 17. The telecom giants have paid some of the money and have sought more time for the rest. But why do these companies have to pay such massive dues? The legal conflict is around 14 years old. The dispute is over the definition of revenue. The worst-hit is Vodafone Idea which is saddled with mounting losses and debt and owes the biggest chunk to the government. The company says it will collapse if the government does not give any relief. The collapse of Vodafone Idea would make it the third bankruptcy of a local mobile carrier in two years after that of Aircel and Rcom. It all started with the arrival of Mukesh Ambani's Reliance Jio, which slashed the existing mobile data prices to an extent that India today offers the world's cheapest mobile data packs. Once Jio did it, others had to follow thus dipping their hands to the bottom of their coffers to stay competitive. Meanwhile, data-hungry Indian consumers became more demanding, pushing the companies into a data war. The Supreme Court ruling will change all this. In order to pay the dues, telecom operators could raise the tariffs by 25 to 30 per cent by the end of the year. So, young India will now begin to feel the pinch, as they begin to shell out more for less data.

The telecom tremors: Consequences of Supreme Court's ruling

The Cellular Operators Association of India (COAI) has welcomed the Union Cabinet's approval for the proposal of mitigating financial stress being faced by the <a href="https://www.wionews.com/business-economy/airtel-vodafone-idea-to-hike-data-rates-stock-prices-surge-263162">telecom services sector</a> in the country.

"We welcome the fact that the government recognises the financial distress of the telecom sector and has provided relief in the form of deferments of spectrum payments. We are very thankful to our Minister, <a href="https://www.wionews.com/india-news/121-indian-users-targeted-in-pegasus-spyware-attack-full-extent-may-never-be-known-whatsapp-263433">Ravi Shankar Prasad</a> and the DoT for supporting us and pushing forward our request to the Finance Minister for action. This will certainly provide some immediate cash flow relief to the industry," a note by the DG, COAI Rajan S Mathews on Wednesday read.

The Department of Telecommunication will now give an option to the Telecom Service Providers (TSPs) to defer payment of the spectrum auction instalments due for 2020-21 and 2021-22, either for one or both years.

"These deferred amounts bill be spread equally in the remaining instalments to be paid by TSPs. Interest, as stipulated while auctioning of the concerned spectrum, will, however, be charged so that NPV is protected," an official release from Cabinet said.

According to the release, the decision for deferring spectrum payment instalments for two years will be implemented within a fortnight.

The COAI, however, added that the high level of levies and taxes continue to be a challenge for the telecom sector.

"The telcos pay up to 30 per cent&nbsp;of their revenues to the government, by way of various levies and taxes, which is an enormous burden on the industry," the note by DG, COAI read.

It also urged the government to rationalise the level of taxes and levies through its note.

The Cellular Operators Association of India (COAI) has welcomed the Union Cabinet's approval for the proposal of mitigating financial stress being faced by the telecom services sector in the country.

The Cellular Operators Association of India (COAI) has welcomed the Union Cabinet's approval for the proposal of mitigating financial stress being faced by the telecom services sector in the country. "We welcome the fact that the government recognises the financial distress of the telecom sector and has provided relief in the form of deferments of spectrum payments. We are very thankful to our Minister, Ravi Shankar Prasad and the DoT for supporting us and pushing forward our request to the Finance Minister for action. This will certainly provide some immediate cash flow relief to the industry," a note by the DG, COAI Rajan S Mathews on Wednesday read. The Department of Telecommunication will now give an option to the Telecom Service Providers (TSPs) to defer payment of the spectrum auction instalments due for 2020-21 and 2021-22, either for one or both years. "These deferred amounts bill be spread equally in the remaining instalments to be paid by TSPs. Interest, as stipulated while auctioning of the concerned spectrum, will, however, be charged so that NPV is protected," an official release from Cabinet said. According to the release, the decision for deferring spectrum payment instalments for two years will be implemented within a fortnight. The COAI, however, added that the high level of levies and taxes continue to be a challenge for the telecom sector. "The telcos pay up to 30 per cent of their revenues to the government, by way of various levies and taxes, which is an enormous burden on the industry," the note by DG, COAI read. It also urged the government to rationalise the level of taxes and levies through its note.

COAI welcomes Union Cabinet's move to ease stress on telecom services sector

The government has formed a panel of bureaucrats to suggest ways to alleviate financial pressures on the telecoms sector, a ministry source said on Tuesday, days after a court order that will push mobile carriers to pay overdue government levies and interest.

Mobile operators in India have been demanding support for a sector squeezed by a price war since late 2016 and by the high cost of using airwaves, culminating last week in that Supreme Court decision upholding a demand by the Department of Telecommunications (DoT) for the nearly $13 billion it said was overdue.

A panel comprising senior civil servants will consider the industry's demands, such as the postponement of airwaves auction payments due for the 2020/21 and 2021/22, the source said.

The panel will also look at reducing airwave usage charges and the contribution levels for the government fund set up to ensure that telecoms services reach rural India in a non-discriminatory way, the source added.

Profits of Vodafone Idea and Bharti Airtel have been hit and some rivals have gone out of business since Reliance Industries' Jio Infocomm unleashed a fierce price war when it entered India's crowded telecoms market in 2016 with free calling and cut-price data.

Vodafone Idea previously said it would ask the federal government for relief on payments of at least $4 billion after the Supreme Court decision. Analysts had said the charges could force the company out of business.

Rival Bharti Airtel said it had approached the DoT to "seek clarity" on the amount it had to pay, adding that it has sought the government's support to deal with the "adverse outcome" of the court ruling.

It also postponed the release of quarterly earnings, which had been scheduled for Tuesday, to November&nbsp;14.

Shares in Vodafone Idea closed 8.3 per cent down while Bharti lost 3.5 per cent in a broader Mumbai market &lt;.NSEI&gt; that finished with a 1.4 per cent gain.

The government has formed a panel of bureaucrats to suggest ways to alleviate financial pressures on the telecoms sector, a ministry source said on Tuesday, days after a court order that will push mobile carriers to pay overdue government levies and interest.

The government has formed a panel of bureaucrats to suggest ways to alleviate financial pressures on the telecoms sector, a ministry source said on Tuesday, days after a court order that will push mobile carriers to pay overdue government levies and interest. Mobile operators in India have been demanding support for a sector squeezed by a price war since late 2016 and by the high cost of using airwaves, culminating last week in that Supreme Court decision upholding a demand by the Department of Telecommunications (DoT) for the nearly $13 billion it said was overdue. A panel comprising senior civil servants will consider the industry's demands, such as the postponement of airwaves auction payments due for the 2020/21 and 2021/22, the source said. The panel will also look at reducing airwave usage charges and the contribution levels for the government fund set up to ensure that telecoms services reach rural India in a non-discriminatory way, the source added. Profits of Vodafone Idea and Bharti Airtel have been hit and some rivals have gone out of business since Reliance Industries' Jio Infocomm unleashed a fierce price war when it entered India's crowded telecoms market in 2016 with free calling and cut-price data. Vodafone Idea previously said it would ask the federal government for relief on payments of at least $4 billion after the Supreme Court decision. Analysts had said the charges could force the company out of business. Rival Bharti Airtel said it had approached the DoT to "seek clarity" on the amount it had to pay, adding that it has sought the government's support to deal with the "adverse outcome" of the court ruling. It also postponed the release of quarterly earnings, which had been scheduled for Tuesday, to November 14. Shares in Vodafone Idea closed 8.3 per cent down while Bharti lost 3.5 per cent in a broader Mumbai market <.NSEI> that finished with a 1.4 per cent gain.

Government forms panel to address telecoms woes: Report

People in Bengaluru may face call drops and disruption in internet services as the local municipal body and telecom players are at loggerheads over payment issues.

The Bruhat Bengaluru Mahanagara Palike (BBMP) has ordered to cut telecom cables laid over the ground, citing them to be non-compliant with existing norms, and has demanded fees from companies to lay them underground.

However, telecom service providers said the cables were laid overhead temporarily due to road construction work and they have already paid the fees for laying them under the ground.

A BBMP official told PTI that it was disconnecting only those optical fibre cables which were unauthorised.

"We have incurred huge financial losses because of the unauthorised cables. Several times we had warned the telecom companies to get the cables regularised and should be laid in as per regulations but they ignored our warnings. We were left with no option but to disconnect them," the officer said.

He added that telecom companies still have the chance to disclose the cables they have laid and get them regularised by paying the prescribed fees.

The officer said most of the cables were laid overhead and were dangling from trees, which had caused many accidents in the past.

Meanwhile, telecom industry body COAI said they were authorised temporarily to lay cables aerially as road construction work was going on that frequently damaged cables and they have already paid fees for laying them underground.

"BBMP is demanding the right of way charges again to lay telecom cables underground. We have already paid fees and the cables were laid overground temporarily after permission from BBMP.

"We asked them to put the order on hold and give us time to put them underground as cable cut will lead to disruption in services which is already on red alert after terror attack in Sri Lanka," COAI Director General Rajan S Mathews said.

The Cellular Operators Association of India (COAI) has approached Telecom Secretary Aruna Sundararajan over the issue.

"After telecom secretary's intervention, we met Karnataka State Chief Secretary along with representatives from Reliance Jio, Airtel and Vodafone Idea.

"The chief secretary has asked BBMP to resolve the matter. We will be meeting BBMP commissioner on Tuesday and hope the matter will be resolved amicably," Mathews said.&nbsp;

People in Bengaluru may face call drops and disruption in internet services as the local municipal body and telecom players are at loggerheads over payment issues.

People in Bengaluru may face call drops and disruption in internet services as the local municipal body and telecom players are at loggerheads over payment issues. The Bruhat Bengaluru Mahanagara Palike (BBMP) has ordered to cut telecom cables laid over the ground, citing them to be non-compliant with existing norms, and has demanded fees from companies to lay them underground. However, telecom service providers said the cables were laid overhead temporarily due to road construction work and they have already paid the fees for laying them under the ground. A BBMP official told PTI that it was disconnecting only those optical fibre cables which were unauthorised. "We have incurred huge financial losses because of the unauthorised cables. Several times we had warned the telecom companies to get the cables regularised and should be laid in as per regulations but they ignored our warnings. We were left with no option but to disconnect them," the officer said. He added that telecom companies still have the chance to disclose the cables they have laid and get them regularised by paying the prescribed fees. The officer said most of the cables were laid overhead and were dangling from trees, which had caused many accidents in the past. Meanwhile, telecom industry body COAI said they were authorised temporarily to lay cables aerially as road construction work was going on that frequently damaged cables and they have already paid fees for laying them underground. "BBMP is demanding the right of way charges again to lay telecom cables underground. We have already paid fees and the cables were laid overground temporarily after permission from BBMP. "We asked them to put the order on hold and give us time to put them underground as cable cut will lead to disruption in services which is already on red alert after terror attack in Sri Lanka," COAI Director General Rajan S Mathews said. The Cellular Operators Association of India (COAI) has approached Telecom Secretary Aruna Sundararajan over the issue. "After telecom secretary's intervention, we met Karnataka State Chief Secretary along with representatives from Reliance Jio, Airtel and Vodafone Idea. "The chief secretary has asked BBMP to resolve the matter. We will be meeting BBMP commissioner on Tuesday and hope the matter will be resolved amicably," Mathews said.

Bengaluru may face disruption in telecom services as municipal body, industry spar over payments

Prime Minister Narendra Modi-led cabinet on Wednesday cleared a new telecom policy, news agency PTI reported.&nbsp;

According to reports, the new policy is aimed at attracting $100 billion investments and creating around 4 million jobs in the sector by the year 2022.&nbsp;

The policy, named National Digital Communications Policy (NDCP) 2018, is focused on increasing high-speed broadband penetration, with use of modern technologies like 5G and optical fibres across the country at affordable rates, PTI reported.&nbsp;

The policy draft promised to rationalise levies such as spectrum charges to rejuvenate debt-ridden telecom sector.

The new telecom policy also seeks to provide broadband access to all with 50 megabit per second speed, 5G services.

The telecom service segment is reeling under a debt of around Rs Rs 7.8 lakh crore owing to high spectrum price and related charges.

The new policy draft proposes the adoption of "Optimal Pricing of Spectrum" to ensure sustainable and affordable access to digital communications in the country.&nbsp;

(With inputs from PTI)&nbsp;

Prime Minister Narendra Modi-led cabinet on Wednesday cleared a new telecom policy, news agency PTI reported. According to reports, the new policy is aimed at attracting $100 billion investments and creating around 4 million jobs in the sector by the year 2022.

Prime Minister Narendra Modi-led cabinet on Wednesday cleared a new telecom policy, news agency PTI reported. According to reports, the new policy is aimed at attracting $100 billion investments and creating around 4 million jobs in the sector by the year 2022. The policy, named National Digital Communications Policy (NDCP) 2018, is focused on increasing high-speed broadband penetration, with use of modern technologies like 5G and optical fibres across the country at affordable rates, PTI reported. The policy draft promised to rationalise levies such as spectrum charges to rejuvenate debt-ridden telecom sector. The new telecom policy also seeks to provide broadband access to all with 50 megabit per second speed, 5G services. The telecom service segment is reeling under a debt of around Rs Rs 7.8 lakh crore owing to high spectrum price and related charges. The new policy draft proposes the adoption of "Optimal Pricing of Spectrum" to ensure sustainable and affordable access to digital communications in the country. (With inputs from PTI)

Government approves new telecom policy aimed at attracting $100 billion investment

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