The Hindu Business Line : Budget fails to cheer telcos

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New Delhi Feb. 28 The telecom industry expressed disappointment as none of their major demands found a mention in the Budget proposals. Though the Finance Minister said the Government would consider the industry's suggestion of replacing the existing multifarious levies and charges by a single levy, the industry was hoping for an initial reduction in their annual licence fee from a maximum of 10 per cent to a uniform 6 per cent of their revenues.

"Though there are some small good initiatives there is nothing of significance for the telecom sector in the Budget. Licence fee should have been brought down to 6 per cent to start with and then the Government could have looked at the other levies and charges," said Mr T.V. Ramachandran, Director General, COAI. "At a time when the telecom sector is growing rapidly, the Government should have given a policy thrust that would have taken the sector to the next level of growth," said Mr S.C. Khanna, Secretary General, AUSPI.

The industry, however, chose to find comfort in the decision to consider a single levy regime. "We are glad that the Finance Minster has at least acknowledged, if not granted, a long-standing demand of the industry to replace multiple levies with a single levy," said Mr Sunil Mittal, Chairman and Managing Director, Bharti Group.

Mr Sanjeev Aga, Managing Director, IDEA Cellular said, "We hope that the Committee (appointed to study various tax and charges in telecom) will execute its mandate at the earliest. ."