The Indian government has approved new relief measures for the telecom sector, after several operators said they were having trouble meeting all their obligations. The cabinet agreed to suspend spectrum fees for four years and make it easier for the sector to raise capital from foreign investors, the Financial Express reports.
In July, the telecom operators lost a key court ruling on a long-running dispute over how their regulatory fees are calculated. In August they appealed to the government for help, asking for changes in how spectrum and licence fees are assessed and paid. Two of the three largest operators, Vodafone Idea and Bharti Airtel, are already planning to raise new capital.
Telecom Minister Ashwini Vaishnaw said the government agreed to change the definition of Adjusted Gross Revenue (AGR), on which regulatory fees are based. Non-telecom revenue will no longer count towards AGR. It will also suspend payments for outstanding fees for four years.
Additional long-term reforms are also planned. For future spectrum allocations, the government agreed to extend the licence duration to 30 years, and allow for licence transfers after the first ten years. Spectrum usage charges will be dropped, and spectrum sharing encouraged.
