Telecom industry body seeks 100% FDI

Posted By: Religare
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The telecom industry body COAI has approached the government to allow 100 per cent FDI in the sector, and also provide clear road map, regulatory and policy certainty to improve the sector's health.

In a presentation made to the government recently, COAI said the government must resolve issues concerning one-time spectrum charge and the Vodafone tax dispute.

It said that there is no connect between government's security concerns and the preferential market access (PMA) policy, which mandates that 80 per cent of all security-sensitive telecom and electronic products must be sourced domestically by 2020.

It also appealed that telcos should not be forced to shift to new unified licence regime, especially if they don't want to. It again put forward its years long demand of providing infrastructure status to the sector in order to ease the multiple-levy tax system under which 30 per cent of the sectoral revenue accrues to the government in taxes compared to just 5 per cent in other developing Asian economies.

COAI also asked government to practice of levying a licence fee and a spectrum charge in the auction era, which eats away most of the gross revenue of operators.

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