Mobile phone manufacturing in the country may reach 500 million units in coming two years on the back of good base of talent and an incentive policy, a top Department of Telecom (DoT) official said today.
This year, India produced 100 million phones as compared to 45 million last year.
"The number of phones being manufactured was 10 million sometime back (which increased) to 45 million last year and 100 million this year. The time has come when we will reach 500 million, may be in 2 years," Telecom Secretary J S Deepak said here.
He was speaking on the second day of a seminar on Telecom and Broadcasting theme - ART (Adjudication, Regulation, Telecommunication) of Convergence, TDSAT.
He added that apart from phones, the differential tariff is helping domestic manufacturers to get into other areas like medical electronics, consumer electronics as well as broadband equipment, set up boxes.
"Today with base of talent and incentive policy, India is becoming a global hub for manufacturing of phones and specially low-end phones," he added.
The government is making efforts to reduce imports of electronic products and meet requirement of domestic market through indigenous production.
The government has received proposals worth Rs 1.13 lakh crore in the electronics manufacturing segment from major brands under the modified special incentive package scheme (M-SIPS).
M-SIPS has been extended till July 2020, which was earlier valid till July 2017. The scheme offers capital subsidies to large investments in electronics manufacturing and system design.
The Secretary also said that making high-speed broadband available to individuals in rural areas is a priority of the government.
According to a survey, he said, while Internet users may have touched 400 million, broadband users are in the range of 40-50 million and growing very slowly in rural areas.
"May be 7 per cent people in rural areas use Internet. More importantly, it's the issue of digital divide. We have only 14 per cent rural households which are digitally literate...This needs to change," he said.
SUC was earlier linked to quantum of spectrum holding of
an operator in the range of 3-8 per cent of their adjusted gross revenue.
After evaluating the impact on the exchequer, the government in January 2014 decided to cap SUC at 5 per cent on spectrum that were to be procured in future auction. The SUC collection was at 4.8 per cent level that time.
Telecom operators at that time were asked to pay the weighted average of their existing SUC (on old rate of 3-8 per cent), and 5 per cent if they acquire new spectrum.
Telecom regulator Trai has recommended SUC at uniform rate of 3 per cent across the industry and gradually bring it to 1 per cent.
"As per the GSMA report, even at 1 per cent AGR, tax neutrality will be achieved by 2017," COAI said.
Reliance Jio has contested this view as it pays only 1 per cent SUC on its spectrum in 2,300 Mhz band and proposal to levy 3 per cent fee would put extra burden on the company.
However, Bharti Airtel, also holding spectrum in 2,300 Mhz band, favours uniform levy, according to COAI submission.
