Telecom a services facilitator, not just revenue generator: Manoj Sinha

NEW DELHI: The telecom ministry should be seen as a facilitator of digital and other services and not as a mere revenue generator for the government, minister Manoj Sinha said, signalling a possible shift in the mindset of the ministry and bringing it closer to the viewpoint of the industry, which has long complained about excessive levies and steep base prices for auctions.

“Digital India has to be implemented, which will offer many benefits to other sectors as well. Telecom ministry should be seen as a facilitator, rather than a revenue generator. It’s a valid point,” the minister told ET in an interview.

Between 2010 and 2016, the government raised Rs 3,48,467 crore through six airwave auctions, and telcos hold the steep outgo on account of these as one of the major reasons for their Rs 7.7 lakh crore debt burden. In addition, they claim that almost 30 paise of every rupee earned by them is paid as levy and taxes to the government.


“We’re coming out with the new telecom policy in March. Whatever fundamental changes we have to make, we’ll make in it,” Sinha said, when asked if the government will look at reducing or scrapping licence fee and spectrum usage charge, the two big components of the telecom sector’s revenue contribution to the exchequer.

‘TC Decisions Big Relief for Industry’
The minister added that the health of the telecom sector was looking up. “The numbers are saying that stability is returning to the sector,” Sinha said. “The worst phase is over and the industry is on the path to consolidation.”

To buttress his point, Sinha cited the growing quarterly revenue contribution of telecom companies to the government. “There is an upward trend in revenue in the past quarters — to Rs 54,151 crore in Q1 of 2017-18 and further to Rs 57,848 crore in Q2,” he said.

Sinha reiterated the government’s commitment to a free and unbiased Internet and said the ministry expects to issue its policy on net neutrality within a month. This was broadly in agreement with the recommendations of the Telecom Regulatory Authority of India (Trai), he said. Carriers would not be allowed to discriminate among users on the basis of Internet speed. “Democracy is in our blood,” the minister said.

The Telecom Commission, the highest decision-making body in the telecom ministry, decided on Tuesday to scrap the 50% cap on intra-band spectrum holdings of telcos and instead impose a separate 50% cap on combined spectrum holdings in the 700 MHz, 800 MHz and 900 MHz bands (sub-1GHz bands). It also increased the overall airwaves holding limit to 35% from 25%, giving a boost to M&As and spectrum sales, as carriers try to sell assets, including airwaves, to repay debt.

The commission also extended the payments tenure for auctioned airwaves to 16 years from 12 years and lowered the interest rate on penalties on outstanding dues of telcos to 12% from 14%.

“This will be a big relief (for the industry),” Sinha said.

Commenting on last month’s 2G judgement, the minister said acquittals didn’t mean there was no wrongdoing. “The case is that a murder happened and you did not give your statement, and I went scot-free,” he said. “That doesn’t mean the murder didn’t happen.”

“Investigating agencies should decide whether to challenge the decision,” he said. “Broadly, there were irregularities that took place, decisions were influenced by power corridors…which the SC said, and cancelled 122 licences.”