Quick Summary
The Cellular Operators Association of India (COAI), representing key private telecom operators, has presented crucial demands ahead of the FY25 Union Budget, seeking fiscal relief and strategic investments to bolster the telecom sector. Among the key asks are relief from the Universal Service Obligation Fund (USOF) levy, a 16-year period to offset business losses, and a reduction in license fees to cover only administrative costs. USOF Levy and Fiscal Relief COAI has urged for the abolitio
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FAQ :
The telecom industry is seeking relief from the Universal Service Obligation Fund (USOF) levy, a longer period to offset business losses, and a reduction in license fees. They also want strategic investments for 5G rollout and network expansion.
The current USOF levy is 5% of adjusted gross revenues (AGR) from telecom operators. COAI proposes abolishing it or suspending it until the existing USO corpus is depleted.
COAI advocates for reducing the license fee from 3% to 1%, suggesting it should only cover administrative costs.
Additional demands include exempting service taxes on the assignment of rights to use natural resources, reducing customs duty on telecom equipment imports to zero, and GST exemptions on license fees, spectrum usage charges, and spectrum acquisition fees.
These changes are sought to reduce the financial burden on operators, enable strategic investments in digital infrastructure like 5G and fibre, and address emerging challenges from new communication technologies.
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