The Associated Chambers of Commerce and Industry of India (ASSOCHAM) submitted a telecom strategy paper to the new telecom minister, Ravi Shankar Prasad, detailing a plan to reinvigorate the telecommunications sector.
The paper outlines a four-pronged strategy for telecom revival: reducing regulatory costs, auctioning available spectrum, extending benefits of infrastructure status and providing an impetus to domestic manufacturing.
ASSOCHAM urged the new telecom minister to immediately auction all available spectrum with socio-economic benefits lying idle in the 700, 800, 900, 1800 and 2100-MHz bands.
“Mobile communication can usher in India’s much awaited broadband revolution in a much faster, efficient and cost-effective manner, [and] as such adequate spectrum availability is of paramount significance,” the paper noted. “Thus, all available spectrum must be auctioned immediately, ideally in a big-bang auction or in a short timeframe by delivering benefits to society and revenues for government.”
The chamber likewise urged the new government to fully extend the benefits of infrastructure status already granted to the telecom sector two years ago to enhance its competitiveness.
Important benefits suggested by the paper include a uniform low-cost right of way charge for towers and optical fibers critical for faster rollout of telecommunications network; assured availability of grid power at industrial rates; and preferential/low interest financing and framing of rules under the Telegraph Act for uniform processes for installation and operation of mobile towers across states.
"There is also a need to provide impetus to domestic manufacturing by reviewing and rationalizing levies on equipment manufacturing, incentivizing exports coupled with favorable policy support," the paper added. “Refund of excise duty for domestically manufactured mobile handsets, their components, parts and accessories would boost manufacturing, besides focus should also be laid on research and development initiatives to promote innovation in [the] telecom sector.”
Meanwhile, the ASSOCHAM sees the need to immediately reduce regulatory costs for telecom operators and bring down adjusted gross revenue (AGR) based levies by about 1% annually during the course of next five years.