IMG hints that big policy intervention not required in telecom

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Large scale policy intervention may not be required for telecom as “green shoots” have become visible in the sector during first quarter, according to a source in the inter-ministerial group on telecom.

IMG, policy intervention, telecom, India

At the same time, the group is considering certain measures, including increasing period of deferred spectrum payments to 16 years, a proposal that could bring some relief to the industry.

The inter-ministerial group – constituted to look into the financial stress in telecom sector and give its recommendations – met in Delhi to discuss the issues. The recommendation of the group will be placed before the telecom commission and ultimately to the Cabinet.

Emerging from the one hour meeting, the source who participated in the meeting said that the general thinking in the IMG is that big bang policy intervention may not be required given the “green shoots” that are now visible in the industry.

As of now, the proposals that are being considered by the IMG include giving telecom companies more time to pay for the spectrum they bought. If approved such proposed relaxation will improve the cash flow of telecom companies.

By Baishakhi Dutta

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