The associations representing telecom operators and tower companies have jointly opposed Telecom Equipment Manufacturers Association of India’s (TEMA) suggestion of levying a one-time tax on telecom towers for using diesel.
The apex bodies Cellular Operators Association of India, Association of United Service Providers of India and Towers and Infrastructure Providers Association condemned TEMA allegations and accused it of sensationalising the issue.
India’s telecom operators provide an infrastructure that is central to India’s economy and contribute significantly to the GDP of the economy. They help deliver world class mobile services at the lowest prices in the world despite lowest revenues per user.
The use of diesel is forced on tower companies by the acute shortage of electricity from the grid especially in rural areas. Diesel imposes huge costs as it accounts for over 30 percent of the operational expenses of the tower companies. Companies derive no competitive or other advantage from diesel.
“It is quite unfortunate that TEMA is trying to sensationalise the issue in a highly irresponsible and mischievous manner and the statements made by TEMA are misleading, uncalled for, and devoid of any merit. It is analogous to suggesting that railways run trains on diesel to exploit subsidies,” the associations said.
“They are unnecessarily trying to imply that telecom operators pursue subsidies and profits relentlessly. This is simply not the case,” the joint statement added.
Earlier, TEMA wrote to the Prime Minister alleging that telecom towers were guzzling up to Rs 4,300-crore worth of subsidised diesel every year, which was meant for the rural poor, farmers and bulk transport systems.
Sudhakar June 14, 2012 at 10:05 pm
Hariharan :
Thanks.
Asit Paul June 14, 2012 at 5:03 pm
Cellular Operators are NOT giving Social Service. They are there to do business.
So, they should not be provided with discount on Diesel charge.
hariharan June 14, 2012 at 4:59 pm
hi sudhakar, am reading all your comments quiet some time. i appreciate ur efforts and congratulate ur ideas, keep rocking
Sudhakar June 14, 2012 at 6:39 am
The operators have hiked the offnet call rate to Rs.0.012 and Rs.0.015 per second and also increased the landline rate (by removing it from offnet category and introducing it under LANDLINE category) by Rs.0.015 per second.
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Also in per minute plans, the selfish (GSM) operators have increased the call rate to all landlines in India from offnet category to Rs.1.00 per minute (earlier it was Rs.0.90 per minute).
So the government MUST NOT GIVE subsidised diesel to these idiots (GSM and CDMA) operators in this case. Instead the goverment can give subsidised diesel for RAILWAYS and STATE RUN transport buses (I mean town and route buses, not ULTRA DELUXE and other long distance buses).
It must also provide more tax if operators (both GSM and CDMA) increase the call rate in the name of all India free roaming (for example : Rs.2.00 per minute for any outgoing call twithin India in home and roaming location with incoming free !!!!!!) implementation in future.