"> Tariff hike will boost govt revenue, telcos' financial health, says COAI
India News
Search Web Directory
News Home
Tariff hike will boost govt revenue, telcos' financial health, says COAI
Posted on 3rd December 2019
Mobile operators' association COAI has told the government on the recent tariffs hike by the telcos will improve their financial health, and borrowing capacity and boost the AGR collection for the government.

In a letter to DoT Secretary Anshu Prakash, Cellular Operators Association of India Director General Rajan Mathews said: "Historically telcos have reduced tariffs, but the present increase is motivated by the dire financial situation of most TSPs, resulting from unsustainable levels of debt incurred for payments of spectrum won in auctions."

The hyper competition in the industry has lead to financially unsustainable tariffs that have reduced profits after tax to single and sometimes negative amounts, and the return on capital has sunk to low single digits, he said in the letter.

There is also pressure of doubling up of both upfront spectrum payments and continued revenue share obligations which cumulatively amount to approximately 14-15 per cent AGR. And this, along with GST of 18 per cent, means that over 30 per cent of the top line revenues of the TSPs goes to the Government by way of taxes and levies, said COAI.

The letter further said both domestic and international banks are unwilling to provide any form of liquidity to the TSPs given the poor financial prospects of the operators. This has created shortfalls in working capital funds and resulted in severe debt servicing.

Still in spite of such a situation, TSPs, even after the tariffs hikes, continue to provide lowest tariffs for data at Rs 11 for 1 GB. This is much below the rates paid by consumers 4 years ago at Rs 225 per GB and Rs 330 in 2010, the COAI noted.

Voice rates have also been low with ARPU at Rs 80 from Rs 118 in 2017 and Rs 141 in 2010, it added.

The COAI's letter also said the hikes will improve financial health of the telcos, their borrowing capacity, result in more dues to the government with higher AGR and their network expansion and upgrading, which will lead to better quality of services.

Other Latest News
'No desire for any post': Sachin Pilot calls truce after meeting with Gandhis, says wanted self-respect to remain intact
Posted on 11th August 2020
Former Rajasthan Deputy Chief Minister Sachin Pilot on Monday called truce with the Congress party after a month of high-pitched political drama that also played in the High Court and the Supreme Court. Pilot, who was sacked as deputy CM and as state unit chief, said he has no desire for any post and just wanted the self-respect to remain intact.

His statement came after a meeting with Rahul Gandhi and Priyanka Gandhi Vadra, and announcement of a three-member panel by party chief Sonia Gandhi.

Former President Pranab Mukherjee put on ventilator support after brain clot surgery
Posted on 11th August 2020
Former President Pranab Mukherjee is on ventilator support after undergoing brain surgery at the Army Research and Referral hospital, where he was admitted on Monday morning after testing positive for COVID-19, sources said on Tuesday.

On a visit to the hospital for a separate procedure, I have tested positive for COVID-19 today. I request the people who came in contact with me in the last week, to please self isolate and get tested for COVID-19, Mukherjee tweeted on Monday afternoon.

UP: Chased by eve-teasers, US scholar girl dies in Bulandshahr road accident
Posted on 11th August 2020
In what comes as a tragic end to a bright life, Sudiksha, a girl from Uttar Pradesh's Gautam Buddh Nagar who had received Rs 3.83 crore scholarship to study in the US, died after falling off from a bike in Bulandshahr after being chased by eve-teasers. Sudiksha had returned to India and was going to Sikandrabad with her uncle Manoj Bhati to meet her relatives.

According to reports, the eve-teasers had started performing stunts near Sudisha due to which her uncle was facing difficulty in riding the bike and was getting imbalanced.

Kerala plane crash: Air India praises Malappuram residents for saving lives
Posted on 10th August 2020
Air India Express has expressed its gratitude to people of Mallapuram, Kerala for help in a lane crash in which 18 people died Friday night.

In a tweet, the Air India Express said, Taking a bow to HUMANITY! A standing ovation from our hearts to the PEOPLE OF MALAPPURAM, Kerala, who had showered us with kindness & humanity during the uncertain incident. We owe you a lot! #ExpressGratitude.

Vodafone-Idea's fate hinges on the Supreme Court's AGR verdict today
Posted on 10th August 2020
For Vodafone Idea Ltd (VIL), the future course is closely pegged to today’s Supreme court decision on the issue of tenure of payment of adjusted gross revenue (AGR) dues.

In the last hearing, held in July, the court had ended some confusion by clearly telling VIL and other operators that there would be no reassessment of the AGR dues calculated by the department of telecommunications (DoT). Operators had earlier claimed, based on their self-assessment, that the payable amount should be far less.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Tariff hike will boost govt revenue, telcos' financial health, says COAI
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Security Code*

Be the first person to write a business review for Tariff hike will boost govt revenue, telcos' financial health, says COAI

Most Read News

Ayodhya decked up for Ram temple ceremony, PM to perform bhoomi pujan

Gold prices at Rs 59,300 per 10 gm, silver jumps to Rs 74,210 a kg

Amazon gears up for Prime Day in pandemic with temperature checks, handwash

Mumbai gets highest downpour of season in 12 hours with 215.8 mm rains

Kerala plane crash: Air India praises Malappuram residents for saving lives

More India News

Photo Gallery

Mumbai(11 Images)Mumbai City
  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
About us
Link to us
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2020 IndiaCatalog.com
    All Rights Reserved
Privacy Statement