Budget 2015: Spectrum allocation should be made more transparent, says Videocon Telecom CEO

One of the foremost recommendations to the Hon'bl Finance Minister will be to make true greater airways availability through spectrum sharing and trading that will help in optimum utilisation of this most scarce and sought after resource 'spectrum'. Spectrum allocation should be made more transparent and focused resources should be placed for its auctions.

Today, the unavailability of a streamlined auction system robs the spectrum allocation of its desired benefits, which spirals into greater uncertainty in the industry.

Thus, a singularly focused initiative towards having a thorough look-out into the spectrum business can have rippling effects on the functioning of the industry and help bring more consolidation.

Also we recommend the Hon'bl Finance Minister to extend benefits of Infrastructure sector to the industry. Today, the loan tenure for companies with Infrastructure status is for 25 years whereas loans to the Telecom companies are provided by RBI for only a period of 10 years.

Infrastructure status industries enjoy long credit period on funding from banks and NBFIs with low rate of interest with interest holidays, while in telecom the same is not being extended. Despite clear commitment in the NIA for auction that spectrum would be included in TPA to facilitate funding; the same is not done yet.

Thus the extension of infrastructure status to the industry will help gather greater benefits for the sector.

Also, we expect the new government at the helm to help streamline the sectoral operations by extending the benefits of the said status.

While benefits of an infrastructure status shall help in creating greater sync in the industry, and ensure larger sectoral investments which is one of the major requisites of the sector, yet the missing link is reduction in import duties on import of equipment & devices and excise duty on indigenous supply for Telecom, which should have a thorough look through.

Also, we seek the government's intervention to facilitate infrastructure building with reference to towers & equipment enabling Network expansion in both width & depth and help realise the government's vision of greater internet penetration in the country hence realising the vision of 'Digital India'.

Relaxed M&A norms that enable greater sectoral consolidation, creation of clarity on the access to USOF for Rural and Tribal area rollout by TSP's, tax sops and incremental tax benefits and consideration of spectrum as tangible property by the RBI along with creation of justifiable spectrum charges, are some of the other recommendations to the Union Finance Ministry."