Telecom sector wants Budget 2022 to help usher in next phase of growth, Telecom News, ET Telecom

Burdened by a debt of about 8 lakh crore Rs, the telecommunications sector was thrown a lifeline in mid-September, which included postponing statutory quotas by four years among other relief measures. The industry’s turnover is now in a recovery state, where the telecommunications companies have managed to raise prices twice – in December 2019 and 2021 – and pushed the average turnover per. user (ARPU) up. But with 4G networks to be expanded, upcoming 5G auctions and the need for top-dollar investments, the sector is looking at the budget to lend a helping hand in this next phase. The industry wants tariff relief for critical telecommunications equipment that will help service providers lay down more fiber and improve connectivity.

The telecommunications sector wants Budget 2022 to help usher in the next growth phase
BUDGETARY RECOMMENDATIONS

  1. Reduction of license fees
  2. Customs exemption for critical telecommunications equipment
  3. Financial, political and regulatory assistance to promote the commercial roll-out of 5G networks
  4. Better export ecosystem through more trade agreements. India currently accounts for less than 2% of global electronics production
  5. Bring oil products under GST – Towers run on diesel and there is a cascade effect of high center and state taxes
  6. Fiscal incentive schemes to drive domestic innovation, domestic production and promote technologies such as AI

Comments
The telecommunications industry needs investment in robust and reliable communications infrastructure to meet the growing demand for connectivity. There is an urgent need to reduce the burden of taxes on the sector, said SP Kochhar, Director General, COAI.

Favorable budget announcements for rural Internet penetration through the use of USO funds will help the country realize its digital ambitions in the 5G wave, said Peeyush Vaish, Head of Partner and Telecommunications Sector, Deloitte India.

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