Finance ministry has ‘good and bad’ news for telecom companies

The finance ministry has turned down telecom companies’ requests to reduce their licence fee, spectrum usage charge, universal services obligation fee and other levies in the upcoming Union budget, people privy to the development said. The ministry also turned down telcos’ demands for reducing their cost of fund, but advised them to go back to the telecom department, giving a possible ray of hope that some of their issues may be addressed outside the purview of budget, the sources said. “The issues will not be taken up in the Union budget, but there can be mechanisms for addressing the issues separately,” said a person aware of the developments. “The issues need to be followed up with the concerned ministry (IT and telecom), that can then send their recommendations to the finance ministry.” During a meeting with finance minister Nirmala Sitharaman last week, the telecom industry had sought “strategic intervention to enhance financial viability” of the sector at a time when leading carriers Bharti Airtel and Vodafone Idea are aggressively raising funds to pay off past dues emanating from adjusted gross revenue (AGR). They will also be required to invest in improving network connectivity. At the meeting, the industry sought that… Read full this story

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