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Home » News » Telecom » Mobile Phone Firms Want License Fee Eased
Mobile Phone Firms Want License Fee Eased
By: Reuters   |   Feb 26, 2007
India's cellular phone operators want the Union government to smoothen revenue-share license fee to 6 percent in its annual budget to be unveiled on Feb. 28, an industry body said.


They also want the government to do away with a multitude of taxes and charges and levy a single rate on the sector, T. V. Ramachandran, director general of Cellular Operators Association of India (COAI), said.

"We are getting positive feelers from the corridors of power," Ramachandran said about the sector's demand for softer licence fees.

A phone company had to shell out anywhere between 6 percent and 10 percent of it annual revenue as license fees, depending on the service circle, he said. The average levy across the nation was 9 percent.

A lowering and standardization of this rate would remove procedural hassles and ease some of the burden of a 30 percent total tax burden on mobile operators, Ramachandran said.

"The telecommunication sector is subject to a whole lot of taxes. We want all the taxes to be merged and brought into a single rate," he said.

COAI, which represents operators under GSM (Global System for Mobile Communications), also wants service tax on interconnection usage charges to be removed. "It creates a huge problem for the service providers," he said.

India's mobile phone market has now close to 150 million subscribers, adding 5-6 million users a month.
 
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Obsvously govt should think about it afterall its one of the fastest growing sector with a size of 4lakh cr/-
Divyang @ Jul 04, 2008
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