Tax regime, spectrum rates remain challenges for telcos: Vodafone Idea

NEW DELHI:  Having taken the largest hit from AGR saga, Vodafone Idea’s chief executive officer Ravinder Takkar said on Tuesday that tariffs, levies, and spectrum pricing remain major challenges to telecom service providers operating in India. However, he added that the government’s support and current policies could help it script a success story.

Takkar said, “there are some challenges related to tariffs, taxes, levies, spectrum availability and pricing. The government understands these and has come out with progressive National Digital Communications Policy and are driving implementation of this policy.

I remain optimistic that with government support, the industry and our company will script India’s success story over the next 25 years”. He also noted that there was immense potential for telcos in India to grow, since rural teledensity is “just 59 per cent versus 134 per cent urban teledensity and 450 million mobile subscribers are still not connected to broadband or don’t own a smartphone”. Building India-specific 5G use cases will also “positively impact” industry verticals such as healthcare, and education, Takkar added.