Financial Daily from THE HINDU group of publications
Friday, Jun 14, 2002
Financial Daily from THE HINDU group of publications Friday, Jun 14, 2002 |
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Info-Tech
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Telecommunications Cell cos feel impact of 1/6 formula Our Bureau
HYDERABAD, June 13 THE inclusion of cellular telephone in the one-by-six formula on the income-tax radar and the need to provide identity details for a pre-paid mobile phone connection has had a stifling effect on the industry, leading to slowdown in new acquisitions. The Chief Operating Officer of Idea Cellular, Mr Sanjeev Aga, said across circles there had been some impact on the acquisition of new mobile phone users and Andhra Pradesh was no exception to this development. The cellular services industry was concerned about this issue. ``While the basic telephone connection was removed from the one-by-six formula by the Government, the cellular phone has been included in the formula. This is a matter of concern as this is no different from basic phone. And cellular service is no longer a luxury but has become an essential item. The Cellular Operators Association of India (COAI) has represented the matter with the Government voicing industry concerns,'' he said. ``This move has proved to be a bit of a deterrent for the industry. Though this could be temporary, this has to be addressed. On the issue of identity for pre-paid card on security reasons, the Government has to evolve a new mechanism which could keep track of people, and not through this means. Nothing prevents a person from calling from a public booth where there is no trace of the user,'' he said. "Last month has seen some impact on the renewals and new subscriptions. There has been a fall in the pre-paid card acquisitions, but this may see some correction gradually as people understand the whole issue," the COO of Idea Cellular, AP circle, Mr S.K. Subramanian, said.
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