The reforms send out a strong message to the global community, and are expected to bolster the confidence of investors and lenders in the telecom sector, said Peeyush Vaish, Partner and Telecom Sector Leader, Deloitte India
As per ratings agency ICRA, the four-year moratorium is likely to provide a breather of Rs 14,000 crore to the industry. It will also increase the survival chances of Vodafone Idea, which has the highest AGR dues
Vaishnaw said the telecom reforms package cleared by the Cabinet is adequate for the survival of existing players, and added that with more reforms, that are in the pipeline, "more players should come".
The telecom sector has been keenly watching out for the relief package, which sources said could include redefinition of Adjusted Gross Revenue (AGR) to exclude non-telecom items, cut in levies such as Spectrum Usage Charges and easier terms and conditions for surrendering radiowaves to the government
Trai says the Centre should simultaneously ensure that during these five years, RoW charges for laying common ducts and posts shall be exempted for the central government departments and agencies as well