Centre mulling ‘tariff revision to save the telecom sector’

A sustainable growth model for the telecom sector appears to be in the works, with the government considering revisions to tariff structure.

“Tariff rate is being discussed and in the process… expectations are that it will be fast tracked,” a source in the government told BusinessLine.

This is to mitigate the effects of the AGR (Adjusted Gross Revenue) issue that has impacted telecom operators and also slowed the 5G implementation process. Indications are that another revision of tariff structure is in the pipeline, as the government believes that this only can bring back the sector’s golden days.

Althoughthis may impact consumers in the mid-to-long-term, the balance-sheets of the telcos can improve, especially of incumbent players like Vodafone-Idea and Bharti Airtel, which would be able to clear their statutory dues like the licence fee and spectrum usage charges.