Telecom secretary, K.Rajaraman announced that the telecom sector’s next set of reforms will be firmed up in the first quarter of FY23, along with the government reducing litigation and review order.

A performance-linked incentive (PLI) scheme worth about Rs.4,400 crore will be accommodated for design-led manufacturing of 5G equipment and the fine rint will be issued by March, says Rajaraman.

For the second phase of the PLI scheme, Rs. 4,400 crore has been aside. A total of 12,000 crore was allocated, of which 7,000 crore was spent. It is proposed that the PLI criteria be changed to provide a greater emphasis on local design and manufacture. A small expert group is already working on this mapping, which includes current requirements, products, and recommendations. This will most likely take another 40-45 days to complete. It will be sent to an empowered group of secretaries, and corporations will be invited once it has been cleared.

Aside from the possibility of an extension, the PLI scheme rules will be tweaked to benefit existing telecom players.

Even in rural locations, there is a need to expand coverage and deliver high-quality services. All of this would necessitate a significant amount of capital expenditure, and the sector should be aided in this endeavor by making things simpler, allowing for more investment by lowering the cost of doing business. As a result, more reforms are undoubtedly required, and Reforms 2.0, as mentioned by the minister, are all being considered. A number of decisions will most likely be made in the coming months. The event will take place in the first quarter.

At the end of the day, adjustments to the current legislative framework should be made to make it less prone to litigation and to modernize these statutes, as some of them date back 100-140 years.

The earnings of the 5G auction are a relatively fresh statistic, and it is unclear how much to account for until the finish. It'll be like launching something without knowing how much spectrum would be consumed by the market. As a result, the figures are estimates that will be amended once the Trai recommendations are received.

The government will continue to value BSNL as a strategic asset. The revival plan was implemented in December 2019, and a large portion of it has already been completed. The capex strategy is nearing completion. They will need money to provide 4G coverage, which will need the acquisition of spectrum. As a result, they will have to spend a significant portion of this money very soon.