New Delhi: Union Minister for Communications Ashwini Vaishnaw on Wednesday addressed a press conference and said for future auctions, the duration of spectrum will be 30 years instead of 20 years. The Telecom Minister further added that the spectrum auction will be held in the last quarter of financial year.Also Read - IRCTC Latest News: Get Confirmed Booking of Lower Berth For Senior Citizens | Details Here

“For future auctions, the duration of spectrum will be 30 years instead of 20 years. Also if someone takes spectrum and business conditions/technology changes, then after a lock-in period of 10 years, it can be surrendered by paying spectrum charge,” he said. Also Read - IRCTC Latest News: When Will Concessions in Ticket Fares Restored? Here's What Railway Minister Said

Saying that spectrum sharing is also being allowed, he added that it has been made completely free. He further stated that the Union Cabinet has approved 9 structural reforms and spectrum user charges have been rationalized. Also Read - ‘State Of Super-Emergency’: Mamata Says Pegasus Snoopgate Worse Than Watergate Scandal

“There was a regime of heavy interest, penalty & interest on penalty on payment of license fees, spectrum user charges and all kinds of charges. It has been rationalised today. Annual compounding (of interest) will be done instead of monthly compounding,” he added.

He also briefed that the Union cabinet has decided to allow 100% FDI (Foreign Direct Investment) through automatic route in the telecom sector and all the safeguards will be applicable.

“A reasonable interest rate of MCLR + 2% interest rate has been offered and the penalty has been completely scrapped. This will pave way for large-scale investments in the telecom sector. Investment means employment – more the investment, more the employment,” Vaishnaw added.