Government Likely To Introduce Relief Package For Telecom Sector Soon To Avoid Duopoly


Even though the telecom sector is facing financial issues, cabinet did not discuss the revival package for the industry in today's (September 8) meeting. It was expected that the cabinet might decide on the relief package as Vodafone-Idea is currently facing a lot of financial issues.

Government Likely To Introduce Relief Package For Telecom Sector Soon

The Department of Telecommunication has reportedly asked for four-year moratoriums on AGR and spectrum payments. Also, reducing the fee of spectrum usage charges so the situation of the telecom sector can be improved and three private operators will continue to offer services in the country.

Apart from these measures, the government might take a decision on buying a small stake in India's third-largest telecom operator. For the unaware, the telecom operator is under huge debt and eyeing governments reforms so that it can survive in the sector and in India.

"Deferment in payment of AGR dues and spectrum auction should considerably help the operational profitability of the company. If in four years' time, the company is able to improve its operational performance but is being dragged only due to the payment of these dues, then the government could step in and convert a part of the dues into equity," an official was quoted by ET.

The report also claims that the discussion with the Finance Ministry is on a final stage, which means there are high chances that the package might be introduced or announced soon.

Telecom Operators Measures To Improve Their Situation

Despite the government is likely to make some big changes or reforms in the sector, all three private players are coming up new with initiatives to improve their situation and increasing revenue.

All telecom operators have removed entry-level plans from their websites and application so that low-income groups start looking at other packs to continue their services. In addition, telcos have started revising their existing plans are reduced the benefits.


Meanwhile, Airtel partners with PepsiCo to offers 2GB of data with chips packets of Lays, Kurkure, Uncle Chips, and Doritos. Similarly, Vodafone-Idea has stopped offering double data benefits in some circles. These are known as indirect reduction, where prices have not been increased, but benefits have been reduced.

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