The proposal of the government to reduce the adjusted gross revenue on wireline broadband from 2.5 per cent to 1 per cent is a pleasant surprise for telcos that are saddled with huge dues. This move is aimed at giving a boost to wireline telephone and broadband. The wireline telephone, which lost its way amid the exponential growth of mobile phones, is currently languishing at just 2 per cent of overall customer base. This needs to change.
Work from home getting wider acceptance amid Covid-19 could be the right catalyst for increasing the wireline broadband penetration. The telcos must seize the