Long-standing issues involving floor price tariffs, license fee reductions, and the government's definition of calculating were raised in the letter addressed to the DoT. The telecom industry is seeking a relief package from the Indian government in its recent communication through the Cellular Operators Association of India (COAI), according to a Financial Express report. COAI’s missive dated August 17, 2021, a copy of which has been reviewed by MediaNama, touches upon reduction in levies, an extension of tenure of spectrum lease, and easier payment terms to service debts. The telecom industry is one of the most cutthroat sectors in India. Apart from pending dues worth Rs 1.4 lakh crore, many years of competitive pricing have affected the revenue benchmarks of Indian telcos leaving them in a precarious state. What is the telecom industry demanding? The letter addressed to the department of telecommunications (DoT) requests the following: Relief from the burden of taxes and levies Reduction of License Fee (LF) from three percent to one percent of Adjusted Gross Revenue (AGR) for telecom service providers (TSPs) to cover administrative and regulatory costs. Lowering of the weighted average Spectrum Usage Charge (SUC) by three percent for all TSPs. Limit of one percent on the present five percent of AGR Universal Service Obligation Fund contribution for all the TSPs. Reduced USO levies to TSPs for additional coverage of villages. Increased tenure & easier payment terms COAI said that the current interest rates for deferred payment liabilities (ranging from nine percent to ten percent) are prohibitive. Doubling of tenure…
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COAI knocks on government’s doors for relief package, demands reduced taxes and easier payment terms
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