COAI Calls for Regulatory Reductions for Telecom Expansion

The Cellular Operators Association of India has requested reductions in regulatory levies and license fees from three percent to 0.5-1 percent. In its budget submission, COAI proposes halting Digital Bharat Nidhi contributions until previous funds are used, aiming to lessen the financial burden on telecom companies.

The Cellular Operators Association of India (COAI) is advocating for significant regulatory cuts, including a reduction in license fees from three percent to between 0.5 and 1 percent, as part of their recommendations for the upcoming budget. This move, COAI says, is crucial to reducing the financial burdens on telecommunication companies.

In their formal submission to the government, COAI also recommended pausing the Digital Bharat Nidhi contributions until the existing funds are fully utilized. The association, which includes major telecom players like Reliance Jio, Bharti Airtel, and Vodafone Idea, stresses that financial aid measures are needed for ongoing sector expansion and to further the goal of 'Viksit Bharat'.

Furthermore, COAI has put forth suggestions for changes in GST policies. They propose specific GST exemptions for regulatory payments, such as license fees and spectrum usage charges, or alternatively, a reduction of GST rates under the Reverse Charge Mechanism. These measures, they argue, are necessary for reducing financial strain and supporting the sector's growth as a key 'horizontal value-added enabler'.

(With inputs from agencies.)