ASSOCHAM, an industry body, has presented its 4-pronged telecom strategy to the new IT and telecommunications Ravi Shankar Prasad.
The main focus of the suggestions from ASSOCHAM include reducing regulatory costs, auctioning available spectrum, extending benefits of infrastructure status and providing an impetus to domestic manufacturing.
ASSOCHAM has also urged the new telecom minister to auction spectrum with socio-economic benefits valued at over Rs two lakh crore (excluding proceeds from auctions) lying with the government in 700, 800, 900, 1800 and 2100 MHz bands.
There is a need to reduce regulatory costs for telecom operators and bring down adjusted gross revenue (AGR) based levies by about one percent annually during the course of next five years over a defined glide path while simultaneously maintaining revenue neutrality of the government.
At present, telecom licensees pay as much as 15 percent of their AGRs as license fee along with other related charges towards sector specific levies and various central and state taxes borne by service providers.
“Besides, the current AGR definition is controversial and needs to be reviewed and must be referred to the Telecom Regulatory Authority of India (TRAI) for its consultation and recommendation to make it simple and unambiguous,” said Assocham.
The new government led by Narendra Modi should urgently implement TRAI’s guidelines on trading and sharing of spectrum, besides a clear roadmap should also be laid down for future release of spectrum to give clarity and certainty to the operators.
The new government to fully extend the benefits of infrastructure status already granted to the telecom sector two years ago to enhance its competitiveness.
ASSOCHM wants a uniform low-cost right of way charge for towers and optical fibers critical for faster rollout of telecommunications network.
Assured availability of grid power at industrial rates and preferential/low interest financing and framing of rules under the Telegraph Act for uniform processes for installation and operation of mobile towers across states are certain important steps suggested in the ASSOCHAM paper.
Domestic manufacturing should be improved by reviewing and rationalizing levies on equipment manufacturing, incentivizing exports coupled with favorable policy support.
“Refund of excise duty for domestically manufactured mobile handsets, their components, parts and accessories would boost manufacturing, besides focus should also be laid on research and development initiatives to promote innovation in telecom sector,” sad ASSOCHAM.
TelecomLead News Team
