The Cellular Operators Association of India (COAI) has expressed disappointment in the Union Budget 2012-13.
COAI has issued a statement saying, ?The budget announced does not address critical issues related to the telecom as well as infrastructure sectors of the country. On a positive note, infrastructure funding, including that for cellular towers, Optical Fibre Cables (OFC) and cables have been provisioned to work through Gap funding which seems positive as it is expected to bring down the operating capex considerably.?
?The provision of mobile tracking for fertilizer subsidy also looks to be favorable. But apart from that, there are no major takeaways for the industry.?
?Contrary to the recommendations put forth by the industry, no tax relief/benefits have been granted to the telecom industry which keeps reeling under rising operating costs and deteriorating margins. Moreover, the increase in service tax from 10 per cent to 12 per cent will further affect the growth of the industry as it is detrimental to the objectives of rural penetration and affordable rates for the consumers. The increased costs will eventually be borne by the consumers in the form of higher charges for the services.?
?It is very disheartening that there are still no provisions to support the industry which has been acknowledged as a vital contributor to the nation?s economic health.?
?While we are happy that industries like agriculture have received adequate support, the telecom sector has again been deprived of the much required provisions that would motivate the industry to grow.?
