The Cellular Operators Association of India (COAI) today indicated that profits of mobile telecom industry might shrink further on account of strict subscriber verification norms and the levy of charges on erection of cell towers by the state governments.
Lack of infrastructure facilities in rural areas, coupled with stringent norms of customer verification before providing services, was a deterrent for mobile penetration in most parts of the country, COAI Director-General Rajan S Mathews said.
Operators spend crores of rupees on customer verification process. At present, activating one customer includes a minimum expense of Rs 600-700. Also, state governments have started levying taxes on cell towers. Until recently, the Delhi government charged Rs 50,000 a tower.
