The Telecom sector urges the Centre to reduce levies for 5G viability.

 The Telecom sector urges the Centre to reduce levies for 5G viability.

The Indian telecom industry has sought a reduction in levies to improve the viability of 5G networks. The industry has been grappling with financial stress for years due to high debt, regulatory fees, and taxes. The sector is now hoping that the government will take steps to support the deployment of 5G technology, which requires significant investment.

Current Situation

Telecom operators are facing financial strain due to the high spectrum and infrastructure cost, regulatory fees, and taxes. The sector is seeking government support to reduce the industry's burden.

The Cellular Operators Association of India (COAI), which represents all major telecom operators in the country, has written to the government seeking a reduction in levies for 5G technology. The association has argued that high fees will deter operators from investing in 5G infrastructure, which is essential for the country's economic growth.

The COAI has requested the government to reduce the licence fee from the current 8% to 3%, as well as lower the spectrum usage charge (SUC) from 3% to 1%. The industry body has also asked for a reduction in the goods and services tax (GST) on telecom services from 18% to 5%.

The COAI has argued that a reduction in levies will enable operators to invest more in network infrastructure and improve the quality of services. It has also said that reduced fees will encourage operators to bid for more spectrum, which will help improve the quality of services.

The Indian telecom industry has been struggling with mounting debt and losses in recent years. The industry was hit hard by the entry of Reliance Jio, which disrupted the market with its low-cost data services. The sector has also faced regulatory challenges, including the Supreme Court's order to pay billions of dollars in past dues related to adjusted gross revenue (AGR).

5G and Its Importance

5G technology promises to deliver high-speed connectivity, low latency, and a range of new applications and services. The deployment of 5G networks is expected to drive economic growth and create new jobs. It will also improve the quality of services and enhance the user experience.

However, the deployment of 5G networks requires significant investment, including the acquisition of spectrum, deployment of new infrastructure, and development of new services and applications. The telecom industry is seeking support from the government to enable it to make these investments.

Conclusion

The Indian telecom industry is seeking support from the government to reduce levies and fees to enable it to invest in 5G infrastructure. The industry is facing financial stress due to high debt, regulatory fees, and taxes. The deployment of 5G networks is critical for the country's economic growth, and the sector is hoping that the government will take steps to support the industry. A reduction in levies and fees will encourage operators to invest more in network infrastructure, improve the quality of services, and bid for more spectrum, which will help improve the quality of services.