Sistema Shyam TeleServices Limited (SSTL) has issued a statement on its expectations from the upcoming budget.
In the statement, Vsevolod Rozanov, president and CEO, SSTL said, ?In spite of the numerous challenges being faced by the Indian telecom industry, the 2012 budget presents yet another opportunity for the government to set some systemic elements right. From a global perspective, the telecom industry in India attracts the highest tax of 23 per cent.?
?Looking in AGR terms, the industry generates revenues of approximately Rs 1.22 trillion, out of which Rs 280 billion is the approximate outflow to the exchequer. This needs to be rationalised on a priority. The telecom industry is clearly getting squeezed on account of such outflows and what makes the situation all the more difficult is the hesitation of banks to lend money to operators. All this naturally has a deep impact on the roll out of voice and data services for the common man, especially in the rural areas.?
?Equally significant is the fact that broadband penetration in India stands at just 1 per cent as against the wireless teledensity of 74 per cent. With the national broadband plan envisaging 160 million broadband connections including 60 million wireless broadband connections by the year 2014. There does exist a need to support this growth path. Levy of zero service tax on internet and broadband service would certainly act as a catalyst in this process.?
