InvestorQ : What are the measures that the government announced for the telecom sector and how will it impact Bharti, Vodafone and Jio?
vidhya Laxmi made post

What are the measures that the government announced for the telecom sector and how will it impact Bharti, Vodafone and Jio?

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sarah Leo answered.
2 months ago
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In the previous month, the government had already given a boost to telecom with a mix of short term and long term measures. Now, there one more reform boost to the telecom stocks. Firstly, the government has allowed 100% FDI in telecom sector through automatic route to promote ease of doing business in the industry. Till now, only 49% was allowed through the automatic route. This allows Vodafone to easily raise funds from abroad.

DOT has also slashed performance and financial bank guarantee for the telcos by 80%. This will unlock cash reserves for Bharti Airtel and for Reliance Jio in future bidding processes. The DOT has also eased rules for clearing mobile tower installations via self-declarations, rather than going through tortuous processes. These moves, especially reduction of charges, are likely to benefit the telcos in a big way.

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