All KYC for mobile connections to be digitised: Cabinet clears telecom reforms

The Cabinet on Wednesday announced a host of telecom reforms which as Union minister Ashwini Vaishnaw said will impact both telecom companies and mobile users. "We all have mobile connection and for whatever connection it is, we have filled up some forms. All these forms are deposited in the warehouses and there are 300-400 crore forms in warehouses. In Digital India, there is no need for this paperwork. So all these will be digitised and going forward, there will be no physical KYC," the minister said.

Here are the new reforms for the telecom sector

1. The Cabinet on Wednesday approved 9 structural and 5 procedural reforms regarding the telecom sector.

2. The definition of AGR (adjusted gross revenue) has been rationalised. Non-telecom revenue of telcos has been excluded from the payment of statutory levies

3. Spectrum sharing has been made free.

4. 100% FDI through automatic route in the telecom sector.

5. All KYC (know your customer) forms are to be digitised.

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6. No need for separate KYC to switch from postpaid to prepaid or vice versa.

7. An auction calendar to be put in place for spectrum auction. Going forward, the auction will be held in the last quarter of the financial year.

8. 4G, 5G core network technology to be designed and manufactured in India.

9. Four-year moratorium for payment of AGR dues for all telecom companies.

10. The moratorium will ensure significant cash flow for the companies without impacting the revenue of the government, minister Ashwini Vaishnaw said.

“In the backdrop of the outstanding performance of the telecom sector in meeting COVID-19 challenges, with a huge surge in data consumption, online education, work from home, interpersonal connect through social media, virtual meetings etc., the reform measures will further boost the proliferation and penetration of broadband and telecom connectivity. The Cabinet decision reinforces the Prime Minister’s vision of a robust Telecom Sector. With competition and customer choice, antyodaya for inclusive development and bringing the marginalized areas into the mainstream and universal broadband access to connect the unconnected. The package is also expected to boost 4G proliferation, infuse liquidity and create an enabling environment for investment in 5G networks,” the ministry of communications said.