Indian GSM Telcos Disappointed With Govt’s Inaction Over Systemic Issues Like License Fees, SUC

Indian GSM telecom operators have said that the government had not done much to address the systemic issues of the industry, such as reduction in USOF, license fees, and Spectrum Usage Charges (SUC) as already recommended by the regulator, Trai. They also said that the government’s recent move to extend spectrum payment tenure would not bring any real tangible financial benefit to the industry.

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The COAI (Cellular Operators Association of India), however, welcomed the decision by the Telecom Commission, to approve the Inter-Ministerial Committee’s recommendations regarding the financial health of the telecom sector. The association said that they hope that the government will continue to look into the matter and that the earlier notion, that the telecom industry was simply a cash cow for the government only to be milked for levies & taxes had changed for good.

The body said that the decisions to increase the overall Spectrum Cap would facilitate mergers and acquisitions in the sector, bringing in significant costs saving and reduction in hyper-competition, stabilising the sector in the long run.

The telcos, through their lobby body COAI, said that the decision to allow 100% FDI through the automatic route is a welcome step, considering the fact that the Industry needs substantial investment in the coming years.

“Only in a conducive and mutually supportive environment can the industry continue to provide value and new technology to customers, as well as enhanced revenue to the Government,” Mathews said. He remained hopeful for urgent and immediate substantive relief measures while welcoming the steps taken by the Government so far.