Indian Cabinet approves new telecom policy, expects to attract $100 billion investment

NEW DELHI:  India expects to attract $100 billion in investments in the telecom sector, a union minister said on Wednesday after the cabinet approved a new policy for the sector.

India expects to attract $100 billion in investments in the telecom sector, a union minister said on Wednesday after the cabinet approved a new policy for the sector.

The new telecom policy, now named National Digital Communications Policy (NDCP) 2018, aims to attract $100 billion investment and create 4 million jobs in the sector by 2022.

The government is also aiming to introduce the next generation of mobile communications network, or 5G, Telecoms Minister Manoj Sinha told reporters.

"The new National Digital Communications Policy will create a robust digital communications infrastructure in the country and add 4 million jobs," he said.

The policy also envisioned providing high-speed broadband internet to all citizens by 2022.

According to the draft of the policy, NDCP is focused on increasing high-speed broadband penetration, with use of modern technologies like 5G and optical fibres across the country at affordable rates.

The draft promised to rationalise levies such as spectrum charges to rejuvenate debt-ridden telecom sector, the proposed new telecom policy seeks to provide broadband access to all with 50 megabit per second speed, 5G services and create 40 lakh new jobs by 2022.

It included provisions to adopt "Optimal Pricing of Spectrum" to ensure sustainable and affordable access to digital communications. High spectrum price and related charges have been main concern of telecom services segment, which is reeling under a debt of around Rs 7.8 lakh crore.

Shares of telecom companies rose after media reports said that the Cabinet has approved a telecom policy. The Cabinet decision has put an impact on the share market after which many telecom giants gained on Wednesday.

Vodafone, Idea gained about 1.5 per cent, and the Reliance Communications rose more than 3 per cent.