Convergence India
header banner
No Relief on Bank Guarantees: Minister Scindia Addresses Telecom Sector Concerns
Minister Scindia confirms no relief on bank guarantees for telecom operators while outlining initiatives to enhance service quality and broadband connectivity across India.

By Indrani Priyadarshini

on November 14, 2024

Minister Jyotiraditya Scindia, the Minister of Communications for the Government of India, stated that no relief from bank guarantees will be provided to any telecom operator and that no decision has been made yet.
The development occurs at a time when the private sector telecom service provider Vodafone Idea has requested the government to waive a bank guarantee of ₹24,700 crore for spectrum allocation. While no decision will be specific to any one company, it will have an impact on the entire sector.
He mentioned that BSNL will provide 4G services nationwide by the end of December. Currently, BSNL and MTNL are collaborating, while MTNL's asset monetization is underway.
"MTNL's debts are sovereign-guaranteed... The company will have to negotiate with banks and settle the loan," the minister said.

The Telecom Ministry is currently working on the third phase of BharatNet, an ambitious initiative aimed at providing broadband connectivity to all households and institutions across the country. According to the minister, the goal is to connect 
50,000 gram panchayats to the network.

Work is currently underway on proposals to address issues such as call drops and enhance the quality of service (QoS) in the sector. Monitoring will now occur every month instead of the previous quarterly schedule. The minister emphasized that the new monitoring activities are more detailed than before. Previously, only tower areas were assessed, but now monitoring will also include sales-level activities. Failure to comply with these new standards will result in monetary penalties.

The authorities are actively working to combat fake calls. Approximately 1.35 crore spoof calls are blocked each day. To date, actions have been taken against 1,900 individuals involved in making fake and spam calls, and 1.8 million numbers have been blacklisted.
The minister stated that the government expects TRAI to submit its recommendations on spectrum allocations soon.

When asked about Elon Musk's Starlink making the necessary security standards, the minister stated that the American satellite company is yet to meet the necessary security standards. "A license for satellite communication services will only be granted once Starlink complies with all requirements to operate in India," he added. "We are more than happy to give them a license if they comply with all the conditions," added Scindia.
 

CI & SCI Videos