Government should do away with USOF: Vodafone MD and CEO

vodafoneVodafone India MD and CEO, Marten Pieters has stated that telecom service providers face “financial burdens” and other charges like USO Fund fee and spectrum usage charge (SUC) in Indian market. According to him, all these charges are limiting their investment capacity in domestic market.

He said that the government should “get rid” of charges like the USO Fund, which he felt holds no relevance in today’s times. He also said that penalties imposed for minor violations, including procedural lapses, are very high and should be softened.

The private operators have been penetrating rural and other areas at their own initiative and there is no need for the government to charge a separate fee for the same.

“We are by far connecting one of the most rural customers within our network. Of the 174-million customer base of Vodafone, we have 92 million in rural areas. In this scenario, why should we contribute to the fund that was originally meant to connect rural customers. We should get rid of this, he said.

He said that taxes, levies and charges, which are imposed on telcos, are limiting their capabilities to invest in network expansion. For example, while Vodafone has invested Rs 60,000 crore on capital expansion and spectrum acquisition over the last five years, its contribution to the exchequer in terms of taxes and other charges amounts to Rs 70,000 crore.

“The financial burden does limit the investment capability. Remember, you can invest a rupee only once. If you pay it to the government on various charges and levies, the network rollout investments may suffer,” said Pieters

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22 Comments on "Government should do away with USOF: Vodafone MD and CEO"

 

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irfan
November 23, 2014 9:53 pm 9:53 PM
yes the indian govt is charging too high for various irrelevent things which we dont see anywhere in the world and besides there is no service tax on the recharge amount anywhere in the world you get what you pay its simple but here in india we get 7 out of every 10 rs recharge. this is shit and only the consumer has to suffer . when the govt charges these operators heavily then they naturally have to pass on these expenses to the consumer via tariff hike so there is no point barking on the telecom companies as the… Read more »
APpL€ LoVeR™
November 25, 2014 10:23 pm 10:23 PM

on going through your comments i found out two things:
1) You don’t know nothing about the profit made by these companies per year.
2) You don’t know the reasons for QoS deterioration.
3) Both you and Thushar were out of mind.

irfan
December 12, 2014 1:14 am 1:14 AM

sorry to make you dishartened my friend but i am a ex vodafone employee i dont have as much understanding as you have about the market but to a little extent .

irfan
November 23, 2014 9:20 pm 9:20 PM
yes the indian govt is charging too high for various irrelevent things which we dont see anywhere in the world and besides there is no service tax on the recharge amount anywhere in the world you get what you pay its simple but here in india we get 7 out of every 10 rs recharge. this is shit and only the consumer has to suffer . when the govt charges these operators heavily then they naturally have to pass on these expenses to the consumer via tariff hike so there is no point barking on the telecom companies as the… Read more »
tushar
November 23, 2014 9:57 pm 9:57 PM

Everything was fine but the last line ruined whatever you said. Bsnl/mtnl do not have quality in majority of their operating areas and costumer support is a joke. You are using private operator because of their quality !

irfan
November 24, 2014 12:29 am 12:29 AM
LOL my friend i am sorry you mis understood my point here whatever i have said regarding the BSNL/MTNL was in the sarcastic manner and i wrote this comment for those who were commenting against the vodafone “s opinion for the Govt to do away with a lot of charges and penalties imposed on the operators which is preventing and acting as an hindrance in the investment plans furter in the telecom sector by these MNCs like vodafone all of their money gets spend either in bribing to the Govt officials or in the spectrum auction .
irfan
November 24, 2014 12:33 am 12:33 AM

i meant here if we start using the bsnl or mtnl then only we can get to know how far these private companies strive to provide us good service as we all know that bsnl ‘s service and customer care is the worst among all and then we will not be able to comment as no one will be listening to us then as ususally happens in most of the govt orgainistions have had the worst experinece with bsnl once thats why i hate these govt companies

tushar
November 24, 2014 3:27 pm 3:27 PM

During the time of competition when they don’t have large base, they are not able to provide the quality service. Expecting them to perform outstanding during Monopoly will be over expectations.

tushar
November 24, 2014 3:35 pm 3:35 PM

Let people taste the quality of those ‘babus’ , at the end when your business is at stake because of call drops or poor voice clarity or during medical or some urgency your cellphone flashes messages “No Network” , then they will run to these private operators who are providing satisfactory service and will say “Take my money, but at least give me the service”.

Raghuram
November 23, 2014 5:49 pm 5:49 PM

AVOID please stop increasing the rates as and when u want.

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