The Economic Survey has called for further reforms in the telecom sector, including rationalisation of multiple levies and taxes.
This is one of the long-standing demands of the telecom companies, which pay about 30 per cent of their revenues to the Government in the form of taxes and levies.
“The sentiments in this sector could be lifted by further reforms which could include rationalisation of the multiple levies and taxes and using mobile services in the delivery of different social welfare schemes, which can increase its rural penetration,” the Survey said.
It said that this objective would be met through The National Telecom Policy, which is likely to be in place by June.
The policy envisages a number of new initiatives including free national roaming and pan-India mobile number portability.
Consultation with stakeholders
“The Draft of the policy was circulated in 2011 for consultation with various stakeholders. Views/comments from these stakeholders have been received and the same are under consideration. The NTP is likely to be in place by June 2012,” the Survey said. The Survey is, however, silent on the 2G spectrum mess, which has put the brakes on the industry for the past year. The report notes that there was a 51 per cent decline in the growth of cellular subscriber addition in 2011-12.
Indigenous tech
Going forward, the government is supporting the domestic equipment manufacturing industry and growth of indigenous technology, the Survey notes.