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FDI in telecom sector to cross $10 bln this fiscal; DoT to re-auction 700 Mhz band spectrum
JS Deepak expects investments in the sector to touch $10 billion (Rs 68,000 crore) this fiscal year, sharply higher than the $1.3 billion clocked in FY16.

NEW DELHI: Telecom secretary JS Deepak expects investments in the sector to touch $10 billion (Rs68,000 crore) this fiscal year, sharply higher than the $1.3 billion clocked in FY16, due mainly to numerous policy reforms taken this fiscal.

Among the priorities for 2017 is to ensure a level playing field for operators while fostering competition, which will benefit the end consumer, Deepak told ET in an interview. The entry of Mukesh Ambani-owned Reliance Jio Infocomm has resulted in a bitter battle both on and off the market with India’s largest telcos like Bharti Airtel, Vodafone India and idea Cellular alleging bias against them and in ravour of the newcomer.

But Deepak was positive about the sector, saying the department’s efforts would be focused towards ensuring best technology is available to India at affordable prices.

“The reforms and the ease of business which we have brought into the sector this year has led to an increase in business confidence and trust in the sector. It has led to $8 billion in FDI in the sector so far compared to $1. 3 billion last year and we expect this to become at least $10 billion by the end of the financial year,” Deepak said.

He added that the DoT expects additional investments to come from virtual network operators (VNOs) and in the infrastructure (read: towers) segment.

The bulk of the foreign direct investment so far has come through the $7 billion equity infusion announced by British telecom major Vodafone Plc into its Indian subsidiary earlier this year at a time the telecom sector is witnessing hyper competition with the entry of Jio.

Speaking about the next round of auctions in 2017, Deepak said the DoT will look to auction all the spectrum left unsold in the last sale, including in the coveted 700 Mhz band, and will send a reference back to the Telecom regulatory Authority of India (Trai) for pricing.

The department is also exploring the possibility of roping in private telecom operators for laying of optic fibre network across the next 150,000 gram panchayats as part of the BharatNet project.

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