Budget 2015: Telecom industry demands relaxation of spectrum trading and sharing norms

In an exclusive interaction, Vivek Sood, CEO, Uninor, talked about four key things the telecom industry is expecting from the Budget 2015-16, especially as an impetus which can aid the industry to partner with Government's Digital India mission

The telecom subscriber base in India reached 96.42 crore in Nov 2014, but a major chunk of it was attributed to the urban and semi-urban population. It is noted that 70 per cent Indians who live in rural areas have still not experienced effect telecom penetration.
The proposed 'Digital India' project is going to necessitate strengthening of telecom and internet infrastructure as these form the back bone of this campaign which aims at making various government services available for citizens electronically. Added to this, offering telecom services at affordable prices and promoting low cost mobile devices will become essential to promote the widespread usage of 'Digital India' services in rural areas.

Currently, all Indian telecom players are eyeing partnership opportunities with the Government to invest in this project. But today, the industry is plagued with spectrum availability and trading related issues which is making it challenging for telecom players to enter full steam into this project.

In an exclusive interaction Vivek Sood, CEO, Uninor, talked about four key pre-budget expectations of the telecom industry which can infuse optimism among the telecom players to partner in the 'Digital India' project.

> Relaxed norms for spectrum trading & sharing and merger & acquisitions

Since there is a spectrum crunch in the country, the Budget should remove limitations with regard to spectrum trading and sharing needs in order to achieve the objective of efficient utilisation of frequency airwaves. Relaxed norms with respect to spectrum sharing and trading and M&A will aid further consolidation in the telecom sector.


> Make more spectrum available

When benchmarked with the spectrum available for broadband over mobile networks there is a shortage of spectrum required to provide broadband for all in India. Through the Budget, government needs to make available more spectrum at a price which can make mobile services affordable for masses.

> Rationalisation of taxes

The Telecom sector is impacted by multiple taxes and levies such as excise duty, custom duty, service tax, revenue share, spectrum charges, TDS, etc. The tax regime needs to be re-looked through the Budget so the service provider is not burdened and growth of LTE and 3G in the country is ensured. Such rationalisation of taxes and levies will help the sector to sustain the cost pressures.

> Building an affordable device ecosystem to deliver the Digital India vision

Building an affordable device ecosystem for masses is the key in achieving the government's broadband vision. Ensuring mobile access will be the most important lever in delivering basic citizen services such as education, healthcare and banking to all. To increase internet penetration, the government should look at subsidising low price internet handsets through the Budget, so they are for mass consumers.

In an exclusive interaction, Vivek Sood, CEO, Uninor, talked about four key things the telecom industry is expecting from the Budget 2015-16, especially as an impetus which can aid the industry to partner with Government's Digital India mission

The telecom subscriber base in India reached 96.42 crore in Nov 2014, but a major chunk of it was attributed to the urban and semi-urban population. It is noted that 70 per cent Indians who live in rural areas have still not experienced effect ..

No comments: