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.
“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.