Regardless of consolidation witnessed within the telecom sector within the final decade, there may be adequate competitors as not less than 4 telecom service suppliers are current in every of the 22 licensed service areas within the nation, the federal government stated on Wednesday.
In a written reply to a query within the Lok Sabha, Minister of State for Communications Devusinh Chauhan stated, “There was a consolidation within the telecom sector since 2012. Even after the consolidation, there may be adequate competitors within the sector as not less than 4 Telecom Service Suppliers (TSPs) together with one public sector endeavor (BSNL and MTNL) are current in every Licensed Service Space (LSA). The nation is split into 22 LSAs.”
Consolidation within the telecom sector has resulted in optimum utilisation of sources together with radio spectrum. The identical is clear from the substantial enhance within the variety of telecom towers, community protection and subscriber base, the minister stated.
At current, the cell networks in India are serving greater than 115 crore subscribers (as on 31 December 2021). Almost, 98 per cent of the inhabitants is roofed with 4G community. Additional, there was a big discount in tariffs for voice and information since 2016 which additionally signifies the presence of ample competitors within the telecom sector, the minister added.
The Union Cupboard in its assembly held on September 15, 2021, had authorized the proposal for rationalising definition of Adjusted Gross Income (AGR), rationalising of rates of interest and removing of penalties, rationalising financial institution ensures necessities and allowing 100 per cent FDI beneath automated route in telecom sector.
“These reforms are anticipated to advertise wholesome competitors, infuse liquidity, encourage funding and scale back regulatory burden on Telecom Service Suppliers,” Mr Chauhan stated.