{"id":139735,"date":"2021-10-07T20:56:52","date_gmt":"2021-10-07T15:26:52","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=139735"},"modified":"2021-10-16T12:48:50","modified_gmt":"2021-10-16T07:18:50","slug":"government-allows-100-fdi-in-telecom-sector","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/government-allows-100-fdi-in-telecom-sector\/","title":{"rendered":"Government allows 100% FDI in telecom sector"},"content":{"rendered":"\n
What is the news?<\/span><\/b>\u00a0<\/span><\/h5>\n

The Department for Promotion of Industry and Internal Trade<\/strong> (<\/span>DPIIT) has recently allowed 100 % FDI<\/strong> across all kinds of telecom services and infrastructure providers.<\/span>\u00a0<\/span><\/p>\n

Earlier status of Telecom sector<\/span><\/b><\/h5>\n

Earlier 100 % of FDI was allowed, of which 49 % of investment was permitted through automatic route.<\/span>\u00a0<\/span><\/p>\n

About the recent changes in the telecom sector<\/span><\/b><\/p>\n

The Department of Telecommunications<\/strong> (<\/span>DoT<\/span><\/b>) has slashed performance and financial bank guarantee requirements of telecom operators by 80 percent.<\/span>\u00a0<\/span><\/p>\n

The amendment has been made in both old telecom\u00a0licences\u00a0in the UASL (Unified Access Services\u00a0licences) category and new\u00a0licences\u00a0that were started in 2012- Unified\u00a0Licence\u00a0(UL) category.<\/span>\u00a0<\/span><\/p>\n

However,\u00a0<\/span>the<\/span>\u00a0amendment is subject to\u00a0the condition<\/span><\/b>\u00a0that\u00a0<\/span>a body of a country, which shares a land border with India or where the beneficial owner of investment into India is situated or is a citizen of any such country, can invest only under the government route<\/span>.<\/span>\u00a0<\/span><\/p>\n

What is <\/span><\/b>UASL (Unified Access Services licences) category?<\/span><\/b><\/h5>\n

Under this, the country is divided into 22 Service Areas consisting of 19 Telecom Circle Service and 3 Metro Service Areas for providing Unified Access Services (UAS).<\/span>\u00a0<\/span><\/p>\n

Unified Access Services operators are free to provide services, <\/span>within their area of operation, which cover collection, carriage, transmission and delivery of voice and\/or non-voice messages.<\/span><\/p>\n

What is the U<\/span><\/b>nified Licence (UL) category?<\/span><\/b><\/p>\n

It is the\u00a0<\/span>convergence\u00a0between various services, networks, platforms, technologies and overcoming the existing segregation of licensing, registration and regulatory mechanisms in the concerned areas. This is done to enhance affordability, increase access, delivery of multiple services and reduce cost.<\/span>\u00a0<\/span><\/p>\n

Source:\u00a0<\/span><\/b>This post is based on\u00a0the following articles<\/span>\u00a0<\/span><\/p>\n