The Hindu Business Line : Cellular players want lower taxes, FDI flow

Mr. Sunil B. Mittal, Chairman, Bharti Enterprises, with Mr Asim Ghosh, MD, Hutchison Essar, at the Cellular Summit 2004 in the Capital on Friday. - - Ramesh Sharma

New Delhi , June 18

THE cellular industry led by the Bharti Group Chairman, Mr Sunil Mittal, has called upon the Government to bring down the levies and fees imposed on the telecom sector in order to offer affordable services to the consumers. It also urged the Government to look into the issue of interconnection between the private players and Bharat Sanchar Nigam Ltd and to relax norms for attracting foreign funds.

"The telecom industry is one of the highest taxed segment. Apart from paying a licence fee ranging from 8 per cent and 15 per cent per annum, we pay 8 per cent service tax, sales tax to the State Governments, charges for right of way, cess for putting up towers. Everybody in the line of command is trying to extract the maximum from a sector that is performing so well and is so crucial to the overall development of the country," said Mr Mittal.

Speaking at the Cellular Summit 2004, organised by the Cellular Operators Association of India, Mr Mittal said, "This sector requires large investments. Relaxation in foreign direct investments for the sector was a promise made by the previous government. It was part of the agreement which we had arrived at with the Government. We look forward to the Government's policy. The industry must be allowed to raise funds."

Mr Nripendra Mishra, Chairman, Telecom Commission, said the Government's focus would be on taking telecom services to the rural areas.

"The digital divide must be bridged. The Government is keen that the industry goes in the rural areas," Mr Mishra said. Taking part in the deliberations, Mr Pradip Baijal, Chairman, Telecom Regulatory Authority of India, said though India had the advantage of being late starter, no one can predict the way technology could force a change in the rules of the game.

Mr Baijal said that disruptive technologies like voice over Internet would throw up a lot of questions for the regulator and the policy makers to answer.