DoT meets telcos, associations on new telecom policy

New policy formulation comes at a time when the sector is confronting financial difficulties.

Update: 2017-07-22 07:01 GMT
Revenue secretary Hashmukh Adhia insisted that the tax incidence on telecom services will be unchanged at 15 per cent after the input credit is taken on equipment.

New Delhi: The Department of Telecom (DoT) today held detailed discussions with the operators, industry associations and research organisations on the broad contours and direction for the new telecom policy.

Based on the inputs received today, the DoT will be constituting working groups in the coming weeks to look into different aspects of the upcoming policy, Telecom Secretary Aruna Sundararajan told PTI.

"The meeting drew a huge response. There were representatives from telecom companies, infrastructure providers, research organisations and trade bodies, and discussions took place on what should be the focus of the new policy," she said.

The DoT is in process of formulating a National Telecom Policy that will focus on areas such as Internet for all, next-generation technologies (like 5G and Internet of Things), skills development, and security, among others.

The DoT plans to go for a wide consultation and outreach before finalising the new policy, and expects to have it in place by March 2018.

The new policy formulation comes at a time when the sector is confronting financial difficulties. Revenue and profitability of both large and small operators have come under severe pressure after the entry of aggressive newcomer Reliance Jio and the subsequent advent of free data and voice offerings.

A recent report by Icra has warned that industry revenue will plunge by another 6 per cent in the current financial year due to competition and pricing pressure.

An inter-ministerial group has been constituted to consider measures to mitigate the industry's financial stress, and the report of the committee is expected before the end of the month.

Asked to comment on Jio's new aggressive offering announced today, Sundararajan said "these are all new benchmarks for India. It is all making it accessible and affordable for the common man".  

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