Telecom Industry Urges Relief from AGR Fees, Calls for Reduced Licence Fee

COAI seeks urgent abolishment or reduction of AGR-related fees for telcos and proposes lowering license fees to 0.5-1% of revenues. Highlighting the burdens on telecom service providers, COAI argues that the current fees hinder technological advancements and calls for government consideration to foster digital growth.

In a significant move, the Cellular Operators Association of India (COAI) has called for the urgent abolishment or reduction of AGR-related fees for telecom companies. COAI proposed lowering the current license fee from 8% to between 0.5% and 1% of gross revenues.

The COAI, representing major players like Reliance Jio and Bharti Airtel, argued that the existing fee structure presents a 'double whammy' for telecom service providers who both purchase spectrum in auctions and pay additional AGR-based charges. This financial burden reportedly stifles further investments into the rapidly advancing telecom sector.

Emphasizing the sector's vital role in national economic growth and digital inclusion, especially with the advent of 5G, COAI urged the government to promptly address license fee reforms to ensure the seamless development of telecommunications infrastructure across India.

(With inputs from agencies.)