Govt set to overhaul telecom regulatory norms: Vaishnaw
The Centre is mulling changes to aid the technological growth expected in the sector
NEW DELHI: The government is planning a complete overhaul of the telecom regulatory framework in the country as part of its next set of reforms for the sector, a top official said, after having addressed the financial constraints of telecom service providers in the first phase.
It is considering all options including a new law or changes to existing laws, to aid the technological growth expected in the sector in the years to come. Systemic changes could lead to reduction in litigation and pending cases, addressing a key demand of the industry.
The sector, which is primarily governed under the 1885 Indian Telegraph Act and 1933 Wireless Telegraphy Act, has seen massive technological advancement over the last decade leading to India becoming a fast adopter of 4G services across the country and now moving to 5G.
“We have to look at it from the perspective that there is a series of sets of rules and regutry lations, which have got built up over a period of 80 years, that needs to be simplified. These are things which may not have a financial number around them, but the impact these things make will be over decades, that changes the structure of industry,” communications and information technology minister Ashwini Vaishnaw told Mint.
The structural changes to the industry will ‘definitely’ address the issue of high litigation in the sector, the minister said, adding that the Prime Minister Narendra Modi has set an internal target of benchmarking India’s telecom regulation with the global best. “We would like the industry to focus on new investments, innovation, connecting the unconnected, which is our basic tenet of our government, rather than litigating. So much of the simplification that needs to be done will obviously impact the litigation. Already many of the cases have become defunct after the change in definition of
AGR,” he said.
When asked whether the government would be open to fresh legislation to further enable the growth of communication and digital services in the country, Vaishnaw said, “Parliament is in session, this is not the right time to comment on that but we have to look at all the options,” he said. The next set of reforms is unlikely to focus on rationalisation of levies or taxes, even as the department has recommended that the finance minisconsiders refunding credits of more than ₹50,000 crore stuck under goods and services tax.
Vaishnaw said that while the recommendations have been sent, the issue was extremely complex and a near term solution to the issue may not be in hand. “I think all that money which is collected is already deployed. I think there are too many complications, then there is the GST Council. It’s a very complex issue where I think a lot more consultation is there with all the states,” he said,
The government is aiming to conduct the next auctions including 5G by next April, Vaishnaw said, noting that the telecom regulator had already started the consultation process on fixing the base prices for airwaves to be sold and that the process was half-way through.
“We will have auctions on time and I think with the September reforms, the industry is also feeling pretty comfortable that okay, the time has come to move on to the next technology,” he said. On the persistent issue of high spectrum prices that have thwarted previous auctions of 5G airwaves, Vaishnaw said the government was thinking of making spectrum a public good rather than a revenue maximization tool, indicating relief in spectrum prices.