Telecom Ministry forms committee to spell out revival plans for Telecom sector

Acknowledging that country’s telecom industry was under financial stress, Union Telecom Minister Ravi Shankar Prasad had constituted a committee chaired by Telecom Secretary Aruna Sundararajan to spell out revival plans for Telecom sector.

About Aruna Sundararajan Committee

Background: As the Indian telecom sector is under stress for a long time Union Minister has decided to deal with this issue now on priority basis thus for this purpose he will be meeting all telcos ‘at the earliest’ to discuss various sectoral issues and also constituted Aruna Sundararajan Committee to look into entire issue of removing ambiguities in ease of doing business and also to revisit the whole issue of SUC.

Need: Reduction of levies and fees, such as licence fee, SUC and universal service levy, has been a long-standing demand of Telecom industry, along with review of definition of aggregated gross revenue and this will also be main focus areas of committe.

Purpose: To review levies, including spectrum usage charge (SUC), and promote Ease of Doing Business (EDB) in telecom sector.

Mandate:

The Committee headed by Telecom Secretary Aruna Sundararajan would submit its report in 2 weeks’ time.

In case of any issues which require clarity, committee has been directed to seek views of Solicitor General.

Committee would also look into previous recommendations provided by sectoral regulator TRAI (Telecom Regulatory Authority of India) on the issue.

Way Forward

The Government of India is also looking into revival plan for state-owned BSNL (Bharat Sanchar Nigam Limited) and MTNL (Mahanagar Telephone Nigam Limited) on priority and the details for that are being worked out.

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