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New Delhi, Nov. 4 GSM industry on Monday said that they may have to increase the mobile tariffs as result of the additional levies being imposed on them.

“At a time when most operators are working under tremendous cost pressures, it is unfortunate that the Government has decided to impose these charges. It is sad that the sector which has been performing well is being taxed in such a manner. The operators will have no choice but to pass on this burden to the consumers,” said Mr T.V. Ramachandran, Director-General, Cellular Operators Association of India.

He said the spectrum charge being imposed by the Department of Telecom is higher than the licence fee that the operators pay in some cases. “Operators at present pay licence fee between 6 per cent and 10 per cent. If the spectrum charge is increased by 2 per cent then it will be as much as 6 to 12 per cent. That’s a huge burden for any operator,” Mr Ramachandran said.

He said that operators may choose to levy the additional levy being imposed by the Government as a cess on the consumer’s monthly bill rather than increasing the per minute rates.

More Stories on : Telecommunications | Industry Associations | Regulatory Bodies & Rulings

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