Key recommendations to reduce the
financial stress in the telecom industry
The high reserve
price of the spectrum can be reduced to lighten the financial burden on the
also reduce the spectrum usage charges and license fees
should also consider reducing the import duty on critical equipment and also ease
the import of second hand equipment
towards airwaves and associated interest charges. The relief package should include “deferred
payment liability” for spectrum purchases that should be aligned to the
life of the spectrum holding by telecom operators, which is 20 years.
payback plan where companies need to pay for spectrum in 10 years after a
two-year moratorium, can be changed to an extended moratorium of five years and
repayment in 15 years thereafter.
According to the
present payback plan, companies are required to pay for the spectrum in 10
years after a 2-year moratorium period. This payback plan can be eased and the
moratorium period can be extended to 5 years while the repayment time can be
extended to 15 years.
The GST of 18 %
levied on the industry can be brought down to 5% give that mobile connectivity
these days has almost a necessity.
The license fee
of Rs 5 charged for the Universal Service Obligation (USO) Fund should be
returned to the telecom operators as mobile services have already penetrated
India enough. The USO Fund accumulated
has already crossed Rs 45,000 crore.