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CoS to submit recommendations for mitigating financial stress in the telecom sector

October 29, 2019
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As per industry sources, a Committee of Secretaries (CoS) under the Cabinet Secretary will examine the various aspects surrounding the financial health of the telecom sector and give recommendations accordingly to mitigate this stress.

Further, as part of this exercise, the CoS will look into the demand of telecom service providers (TSPs) regarding the deferment of spectrum auction payment due for the years 2020-21 and 2021-22 in order to ease the cash flow situation of the industry. TSPs’ request for reduction of spectrum usage charges (SUC) may also be examined.

In addition, the CoS will reassess the Universal Service Obligation Fund (USOF) charge which at present is at 5 per cent. Earlier, the Telecom Regulatory Authority of India (TRAI) had recommended a reduction of this charge to 3 per cent.

Meanwhile, TRAI is also expected to examine the issue of minimum charge for voice and data services to ensure a robust and viable financial health of the telecom sector.

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