Govt should provide incentives, fee relaxations to telcos to ease 5G outlay cost: Deloitte

NEW DELHI: The government should provide incentive plans and relaxation from tax and regulatory fee-related burdens for a few years on 5G acquisition to ease the stress of initial financial outlay on cash strapped telcos in post-5G scenario, according to consulting firm Deloitte’s pre-budget expectations for the telecom sector.

The launch of 5G services also presents an opportunity for the country to design and develop robust/sustainable indigenous technology by investing in and incentivising its R&D capabilities, and will contribute towards the realisation of a $5 trillion economy, it added.

These incentives can be provided in the form of accelerated depreciation or investment allowance on capital investments which will encourage foreign telecom gear makers to establish manufacturing facilities in India, propel job creation, and boost MSMEs in the telecom sector.