IMG on telecom may submit its report today

The sector is in under financial stress due to increasing pressure after the entry Mukesh Ambani-led Reliance Jio with free services and cheap data offers.

    Telecom Secretary Aruna Sundararajan has said that the inter ministerial group report on improving the financial health of the sector will place before Telecom Commission on September 8.

    IMG on telecom may submit its report today

    She said, " The report would be submitted to the telecom ministry by Wednesday." Adding that, "we will take it up on September 8 for discussion."

    However, she also said that the findings of the report are expected to give some relief to a sector.

    IMG was constituted to suggest reforms in the telecom sector.

    The sector is in under financial stress due to increasing pressure after the entry Mukesh Ambani-led Reliance Jio with free services and cheap data offers to lead to massive fall in revenues and a debt of about Rs. 4.6 lakh crore.

    Meanwhile, Vodafone Group Chief Executive Officer, Vittorio Colao has written to telecom minister Manoj Sinha seeking a cut in interest rates for deferred spectrum payments and concerns over a reduction in Mobile Termination charges (MTC).

    He said, "We hope that the IMG will recommend a reduction in the interest rates for deferred spectrum payments to 6.25 percent in line with the improved macroeconomic trends and an increase in the period of payment for spectrum."

    He also commented, "We are seriously alarmed to see reports that the Regulator is considering a reduction in MTC at a time when the industry is facing such immense hardships. There are only a few operators, like us, who have invested heavily in both rural and urban areas and are proud to have brought connectivity to every Indian's hand. Today 97 percent of a population is covered by telecom. Any move to further reduce MTC risks destroying the very companies that have invested to build this industry."

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