Good news for crores of mobile users, will recharge of Jio, Airtel, Voda become cheaper? – India TV Hindi

Airtel, Jio and Vodafone Idea have made their recharge plans expensive in July. Since then, many users have turned to the government telecom company BSNL. However, now private telecom companies are preparing to give ‘good news’ to the users. According to the reports coming out, private telecom companies have requested the government for this. If the demand of private companies is met, then there is a possibility of recharge plans becoming cheaper again.

Telecom companies demand from the government

Cellular Operators Association of India (COAI) on behalf of telecom companies has demanded from the government to reduce the license fees. The organization representing telecom companies has demanded from the government to reduce the license fee by 0.5 percent to 1 percent. Telecom operators say that network upgrade and expansion can become easier if the license fee is reduced.

COAI said that telecom operators are continuously working to upgrade the digital network. Currently, a total license fee of 8 percent is paid by telecom companies, of which 5 percent is network obligation charge. Telecom operators said that earlier when license fee was linked with spectrum, it was appropriate to charge it, but in 2012 it was separated from spectrum. Now the spectrum is being allocated through a transparent and open auction process.

paying higher license fees

COAI Director General SP Kochhar said the rationale for levying license fees after delicensing the spectrum and allocating it at market price had long ago ended. The license fee, at most, should be charged only to cover the administrative expenses of the license, which ranges from 0.5 percent to 1 percent of total revenues, while telecom companies are paying license fees of up to 8 percent.

At the same time, telecom operators say that if the government and telecom regulators accept this demand, then the industry can benefit from it. Some officials of telecom companies had also mentioned this in the recently organized India Mobile Congress. At present, apart from the payment of AGR amount, telecom companies are also paying CSR, GST and Corporate Tax, which causes huge loss to the companies in the telecom industry as compared to other businesses, due to which they have limited funds to invest in technological upgradation.

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