Telecom

For a sector that is adding over 11 million subscribers a month, growth is a given. The issue for telecom operators, who service over 450 million subscribers currently, is profitability. Service providers want the government to rationalise multiple levies (spectrum charges, licence fee and service fee) into a unified, single levy on revenue.

Operators want the tariffs which varies between 24-32 per cent to come down to levels in other Asian economies (below 10 per cent of revenues), says the COAI.

The association wants the government to reverse the provision inserted in the Budget for 2007-08, which denied tax benefits for amalgamation or demergers taking place after March 2007.

Further, COAI has asked for the tax benefits under Section 80-IA to be extended to new entrants, in line with services which commenced prior to April 2005.

The industry also wants the PAN requirement to be abolished as it is a hurdle in marketing mobile services to low-end subscribers. A reduction in duty on handsets has also been sought as operators prepare to penetrate the rural market.