The Telecom
sector has seen a phase of turbulence since the entry of Jio in the business. Rift
created in the sector has largely impacted tariffs, profitability and mounting
debts, in the face of unbending race triggered by Jio. Various industry
stakeholder’s are in quest of urgent relief from trouble sectors, cut in levies
like spectrum charges and licence fees, restructuring of debt, release of GST
import tax credits viewed up with the government. Their major requirement is
rationalise imports duties on equipment’s and relief under GST payments. Due to
lack of support from the industry players on the overall subject of financial
strain, makes it difficult for the policy makers to draft the relief package.
Certain
operators had also reported about severe liquidity crunch and high spectrum
payments, to which one of the leading players had disagreed to the declaration.
Telecom ministry look this issue to revenue department, moreover a committee
has been established to look up in this subject matter of increasing import
duties where IT ministry, ministry of Commerce and Communication ministry
review will be also taken in account.
All these
efforts are on shred as government is still facing difficulties on responding
to call for such relief package as even the telecom sector is not agreeing upon
the issue all together. Big players like Vodafone Idea are openly accepting the
situation of cash crunch in paying back loans. Bharti Airtel reported a drop in
consolidated profits for straight 10th quarter. For the time being
railway ministry has sought 5G spectrum in 700 MHz band, stating all the pros
and corns of such proposals, and it is expected that cabinet will soon take a
decision on the substance.
Thank you
Regards
Author - Shubhangi Choudhary
Kautilya
IBS Mumbai
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