Recharge Plan
Airtel, Jio and Vodafone Idea have made their recharge plans more expensive in July. Since then, many users have turned to government telecom company BSNL. However, now private telecommunications companies are preparing to give “good news” to users. Private telecom companies have reportedly requested this from the government. If demand from private companies is met, there is a chance that charging plans will become cheaper again.
Telecommunications companies demand from the government
The Cellular Operators Association of India (COAI), on behalf of telecom companies, demanded the government to reduce license fees. The organization representing telecommunications companies has demanded the government reduce license fees by 0.5 to 1 percent. Telecom operators say network upgrade and expansion can be made easier if the license fee is reduced.
COAI said telecom operators are continuously working to upgrade the digital network. Currently, the total license fee paid by telecom companies is 8 percent, of which 5 percent is network obligation charge. Telecom operators said that earlier, when the license fee was linked to the spectrum, it was appropriate to collect it, but in 2012 it was separated from the spectrum. Spectrum is now allocated through an open and transparent auction process.
pay higher license fees
COAI director general SP Kochhar said the justification for charging license fee after de-licensing the spectrum and allocating it at market price had ended long ago. The license fee should, at most, be charged only to cover the administrative costs of the license, which range from 0.5 to 1 percent of total revenue, while telecommunications companies pay license fees of up to 8 percent.
At the same time, telecom operators say that if the government and telecom regulators accept this demand, then the industry can benefit from it. Some telco officials also mentioned this at the recently organized India Mobile Congress. Nowadays, apart from paying AGR amount, telecom companies also pay CSR, GST and corporate taxes, which causes huge losses to companies in telecom industry compared to other companies, so they have funds limited to invest. in technological updating.
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