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TRAI releases recommendations on NTP 2018; suggests reduction in levies and taxes

February 03, 2018

The Telecom Regulatory Authority of India (TRAI) has released its recommendations for the government’s proposed National Telecom Policy (NTP) 2018. According to the recommendations, the TRAI has suggested for a simplification of licensing and regulatory frameworks.

The TRAI has also supported industry demand of rationalisation of taxes and levies in the sector. This will help bring in investments to the tune of $100 billion into the financially stressed telecom industry by 2022. Of the total, TRAI has aimed at attracting around $60 billion in the next two years.

Further, the regulator has suggested that a review be undertaken on telecom license fees, spectrum usage charges, Universal Service Obligation Fund levy to improve ease of doing business.

As per the TRAI, high telecom levies have been a major issue of concern for the industry since close to 33 per cent of every Rs 100 earned by an operator goes to the government as taxes. Therefore, a reduction in these levies is crucial to provide some relief to the operators whose revenues and profits have been falling consistently in the wake of intense competition over the past year.

TRAI has suggested a deadline of 2019 for the simplification of licensing and regulatory frameworks and rationalisation of telecom taxes, levies and related compliance in the sector.



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