Key the spectrum can be reduced to lighten the

Key recommendations to reduce thefinancial stress in the telecom industry·     The high reserveprice of the spectrum can be reduced to lighten the financial burden on thetelecom industry·     Government canalso reduce the spectrum usage charges and license fees·     The governmentshould also consider reducing the import duty on critical equipment and also easethe import of second hand equipment·     Defer pay-outstowards airwaves and associated interest charges.

The relief package should include “deferredpayment liability” for spectrum purchases that should be aligned to thelife of the spectrum holding by telecom operators, which is 20 years.·     the currentpayback plan where companies need to pay for spectrum in 10 years after atwo-year moratorium, can be changed to an extended moratorium of five years andrepayment in 15 years thereafter.·     According to thepresent payback plan, companies are required to pay for the spectrum in 10years after a 2-year moratorium period. This payback plan can be eased and themoratorium period can be extended to 5 years while the repayment time can beextended to 15 years.·     The GST of 18 %levied on the industry can be brought down to 5% give that mobile connectivitythese days has almost a necessity.·     The license feeof Rs 5 charged for the Universal Service Obligation (USO) Fund should bereturned to the telecom operators as mobile services have already penetratedIndia enough. The USO Fund accumulatedhas already crossed Rs 45,000 crore. 

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