Industry Players Want New Telecom Minister To Improve Sector Financial Health

Ashwini Vaishnav has become the new communication minister of India after the reshuffling of the cabinet. Notably, Vaishnav took charge at a time when the telecom sector is under a deep financial crisis, which is why industry players believe that the new team will take some steps to improve the health of the sector.

"As the industry readies to usher 5G and catalyze the digital economy, we look forward to working with the new leadership to improve the financial health of the sector and seek their crucial support for building the right infrastructure to revolutionize the sector," SP Kochhar, director general, COAI said.

Issues In The Telecom Sector

It is worth noting that both Airtel and Vodafone-Idea are struggling to clear their dues. Vodafone-Idea has asked for an extension to pay spectrum dues and installment of AGR dues.

Secondly, incumbents want DoT to bring floor pricing regulation for the industry. In fact, there are high chances that DoT might ask TRAI to bring regulation for the same. In addition, telcos want DoT to reduce the pricing of 5G bands, i.e, 3300 MHz and 3600 MHz bands.

The DoT has already approved the 5G trials in the country and all private telecom operators along with MTNL have started testing their 5G network with their partners. The trial will be completed in the next six months, but an auction might take place in the first half of the next year and deployment will take time.

For the unaware, the foray of Reliance Jio has changed the entire telecom sector as the telecom operator is providing free calling along, content benefit, and data at very affordable prices.

PLI Scheme For Mobile Sector

Apart from heading the telecom ministry, Ashwini Vaishnav has taken charge of the IT ministry, where mobile phone companies are looking for a relief package due to the COVID-19 crisis.

Furthermore, these mobile companies are planning to invest Rs. 11,000 crores under the PLI scheme. They also plan to produce products close to Rs. 10.5 lakh crores in five years. Notably, a production-linked incentive scheme is very important to boost local manufacturing in the country and to reduce dependence on foreign players.