Telecom Industry Seeks Policy Overhaul for Financial Stability

The telecom industry is seeking policy reforms, including tax exemptions and levy reductions, to improve its financial stability. Key recommendations include the abolition of USO contributions, reduced license fees, and extended loss carry forwards. COAI emphasizes the need for increased contributions from large traffic generators to the digital economy.

The telecom services industry is advocating for significant policy changes in its latest budget wishlist to bolster financial stability. Key proposals include the abolition of levies and extending the carry-forward of business losses to 16 years. Large traffic generators, the industry argues, should contribute to the USO Fund and Digital Bharat Nidhi Fund.

COAI's recommendations prioritize reducing the license fee from 3% to 1% and refining the gross revenue definition to exclude non-licensed activity revenue. Such measures, they contend, will help relieve telecom service providers (TSPs) from substantial financial pressures, enabling further investment in essential infrastructure like 5G deployment.

Highlighting the sector's role in driving digital growth, COAI calls for broader industry participation in infrastructure development. They urge OTT platforms to invest in telecom infrastructure, aligning with initiatives like the USO Fund. Lower customs duties on network products and clarity on service tax exemptions round out their proposals for economic relief and sector advancement.

(With inputs from agencies.)