Lok Sabha elections 2019: Industry body seeks roadmap from new govt to resolve 3 issues hurting telecom sector

Industry body COAI on Tuesday said the new government post elections should set out a clear roadmap to ease the burden of levies on the telecom sector, and issues including cut in licence fee and spectrum charges should be taken up at the earliest, preferably in 6-9 months’ timeframe. COAI rued that revenue continues to remain under pressure for the industry saddled with high debt, and for most players the earnings before interest, tax, depreciation and amortization or EBITDA generated “is not enough to meet the interest expenses”.

“The definition of adjusted gross revenue (AGR) should be reviewed to include revenue from licensed activities only … Telecom Department should adopt the recommendations given by the regulator on the issue of determination of AGR,” Cellular Operators Association of India (COAI) Director General Rajan S Mathews told reporters here.