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Telcos knock on Centre’s door for relief

  • Integrity Education, Delhi
  • 20, Aug 2021
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The Cellular Operators Association of India (COAI) has written to the Department of Telecom seeking a cut in levies, a doubling of the tenure of all auctioned spectrum and a reduction in compliances to the bare minimum.

Why is it needed ?
The current revenue sharing regime of around 32% of revenue outgo as taxes and levies is unsustainable

COAI Suggestions to Govt

  • Slash licence fee from 3% to 1% of Adjusted Gross Revenue (AGR) to cover administrative and regulatory costs in line with international practices
  • Reduce the present 5% of AGR USOF (Universal Service Obligation Fund) contribution for all providers to 1%
  • Incentivise service providers with reduced USO levies for additional coverage of villages;
  • Paring the weighted average Spectrum Usage Charge by 3% for all providers.
  • Doubling of tenure for all auctioned spectrum, from the current 20 years to 40 years, “without seeking any additional amounts”.