Tuesday, 22 May 2018

Indian telcos receive a much-needed shot in the arm

By Chris Kelly, Total Telecom
Tuesday 08 May 18

New legislation aims to cultivate over $100 billion in investment into India's telecoms sector

India's beleaguered telcos could see new legislation, aimed at reinvigorating investment in the sector, passed by the end of this month, according to an Indian government spokesman.  &ldquo…

India's beleaguered telcos could see new legislation, aimed at reinvigorating investment in the sector, passed by the end of this month, according to an Indian government spokesman. 

“We want to place the telecom policy before the Cabinet in four weeks. It will be open for public comments for two weeks, then we will finalise everything in a week and send to the Cabinet after that. It will be in place in June,” India's telecoms secretary, Aruna Sundararajan told the New Indian Express newspaper.

The National Digital Communications Policy 2018 will attempt to cultivate over $100 billion in investment into India's telecoms sector by 2022.

The Indian government has already passed legislation that will ease financial pressures on telcos by allowing them to restructure their debts.

India's telecoms sector is beset by ultra-fine operating margins and spiralling levels of debt, brought about by the provision of extremely low -cost voice and data packages by industry new comer Reliance Jio.

As a result, India's telecoms sector is widely considered to be one of the hardest markets for operators to turn a profit in.

As part of the National Digital Communications Policy 2018, India will attempt to provide universal 50Mbps broadband across the entire nation. Sundararajan said that this was at the very heart of securing investment going forward.

“The investment in the sector will come once industry stabilises. There are efforts to stabilise industry soon. The crux of the policy is to have broadband for all,” she said.

Since you're here...

...the Telecoms industry is characterised by constant change and evolution. That's why it's crucial for telecoms professionals to keep up-to-date with what is happening. Join 35,000+ of your peers and sign up to our free newsletter service today, to be in the know about what is going on. PLUS, as a member you can submit your own press releases!

See all membership options

Please enable JavaScript to view the comments powered by Disqus.

Newsletter signup

Quickly get on board and up to date with the telecoms industry