Telecom Industry disappointed with government’s stand

The Cellular Operators' Association of India (COAI) has said that the industry has been left disappointed that its long-standing demand for cut in licence fee and other levies did not figure in measures and reforms announced by the government to boost the economy amid the Coronavirus pandemic.

Just last Sunday, the Finance Minister Nirmala Sitharaman announced the fifth and final tranche of economic stimulus package to deal with the economic fallout of the COVID-19 pandemic. The booster measures related to MGNREGS, healthcare and education, businesses, de-criminalisation of the Companies Act, ease of doing business, public sector enterprises, and resources related to state governments.

COAI said that it is still going through the fine print of the announced measures but added that it was disappointed that the crisis-ridden telecom sector that has demonstrated its ability to maintain connectivity and meet consumer demands for high data and traffic amid lockdown did not figure specifically in the announcements made.

"We are disappointed, as were expecting that given the importance of the industry and the need for us to continue to invest in networks going forward...putting new cell towers, new fibre to provide the speeds that customer require, the fact that we are supporting additional areas like work from home...we expected some relief for the sector in terms of critical things that we had asked for," COAI Director General Rajan Mathews said.

Coronavirus-triggered large-scale migration back to rural areas also means ensuring connectivity and scaling up to meet additional requirement of rural consumers by bolstering networks.