Mr Kiran Karnik, Chairman, CII Telecom Committee (CII National Committee on Telecom & Broadband)
"While the decision on SUC brings uncertainty to an end, we are not excited at the outcome. CII has been suggesting a charge of 2 to 3 %. TRAI, after careful deliberation and calculation, had recommended 3%. The higher charge now proposed will add to the woes of an industry already burdened with high debt as a result of unduly higher taxes and levies. Further, it will make additional investment difficult, with serious social consequences since expansion of service in rural areas will be seriously affected. At a time when government is keen to expand broadband access, lack of investment capital will be a major obstacle. The revolution in equitable and inclusive access to information engendered by the telecom sector (especially through mobile telephony) has been stalling over the last few years, and an appropriate decision on SUC could have given the sector a new boost. We now hope that the decision will be implemented in a pragmatic manner, especially on weighted average charges, so as to ensure that the industry - which has contributed so much to economic growth and to social equality - will be able to regain its earlier momentum."Powered by Capital Market - Live News