Telcos seek levy cuts, exemption of import duty on gear in budget

India’s telecom operators have urged the finance ministry to reduce levies such as licence fee and spectrum usage charge in the Union Budget 2021.

The telcos have recommended that the import of certain telecom equipment crucial for building infrastructure for 4G and 5G wireless services should not attract any basic customs duty.

The Cellular Operators Association of India (COAI), which made a representation to the finance ministry in December listing its budget expectations, said a 20% import duty on telecom gear such as antennas, optical transport equipment/networks, IP radios, long-term evolution (LTE) products, and switches, hurts the cost-effectiveness of telcos.