The Cellular Operators’ Association of India (COAI) has requested the government to lower the telecom license fee from 3% to 0.5%-1% in the upcoming Budget to cover administrative costs. Additionally, COAI proposed reducing the GST rate on various payments to a lower 5% slab from the current 18% rate, aiming to ease the financial burden on telecom operators.
Lt. Gen. Dr. S.P. Kochhar, Director General of COAI, emphasized the need for measures to alleviate the sector’s financial strain, enabling the expansion of next-generation connectivity for a developed India. The license fee, comprising a percentage of AGR and Digital Bharat Nidhi Contribution, poses a significant financial challenge for telcos, according to Kochhar.
COAI recommended a pause on the Digital Bharat Nidhi contribution until the Department of Telecommunications fully utilizes the remaining corpus. Furthermore, the association proposed special GST benefits for telcos, including exemption on regulatory payments and allowing the use of existing ITC balance for GST payments under RCM.
Kochhar highlighted the evolving role of telecom as a crucial enabler across various sectors, emphasizing the need for a reevaluation of spectrum pricing and assignment models.
