A high level committee on financing infrastructure has estimated that the telecom sector would require an investment of Rs 6.5 trillion during the 12th Plan. Of this, Rs 5 trillion would come from private operators, while the rest would come from state-run telecom companies.
The panel has suggested a discussion on fiscal measures needed to lower the burden on the industry. Several suggestions were put forward, including ending multiple taxes on operators, who currently pay 30 per cent of their revenue as levies and taxes.
The panel has also estimated that the total subscriber base will increase to 1,200 million by 2017, from 846 million at present. Of this, 300 million will be on 3G or 4G networks and 175 million would be broadband subscribers.
To meet this demand, operators will have to invest Rs 1.35 trillion on 2G networks and Rs 1.5 trillion on 3G/4G equipment, Rs 400 billion on transmission equipment and about Rs 1 trillion on passive infrastructure.
In addition, the panel expects to spend Rs 1 trillion on purchasing spectrum through auction and Rs 500 billion on consumer premise equipment.
