Lower licence fee, Customs duty on telcos’ wish list

Telecom companies have urged the government to abolish the universal services obligation fund (USOF) levy, reduce licence fee, and bring in exemptions from Customs duty on import of telecom equipment and goods and services tax (GST).

The Cellular Operators Association of India (COAI), which represents major telecom companies, has made the recommendations to the finance ministry ahead of the interim Budget for 2024-25.

Currently, telecom operators pay about 8% of the adjusted gross revenue (AGR) dues to the government. Of these, 5% go to the Digital Bharat Nidhi (previously known as USOF) and 3% towards licence fee.