From UPSC perspective, the following things are important :
Prelims level: Staus of digital Infrastructure of India
Mains level: Digital Infrastructure;
Why in the News?
The telecom industry has proposed several policy recommendations to the Ministry of Communications that are essential to realize the Government’s vision of promoting digital empowerment and inclusivity.
Present global status of the Indian market:
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Recommendations submitted by the telecom industry
- Reduction in Levy and Tax Burden:
- Abolishment of the USOF (Universal Service Obligation Fund) levy because of imposes a burden on telecom service providers (TSPs), diverting resources that could be invested in newer technologies such as 5G and network upgrades
- USOF is the pool of funds generated by 5% Universal Service Levy that is charged upon all the telecom fund operators on their Adjusted Gross Revenue (AGR).
- Reduction of the license fee from 3% to 1%.
- Clarity in the definition of Gross Revenue (GR) to exclude non-telecom activities from tax calculations.
- Abolishment of the USOF (Universal Service Obligation Fund) levy because of imposes a burden on telecom service providers (TSPs), diverting resources that could be invested in newer technologies such as 5G and network upgrades
- Exemption and Duty Reductions:
- Exemption of Service Tax on additional Adjusted Gross Revenue (AGR) liabilities is demanded because it is crucial for the recovery of the industry’s financial health and ensuring efficient 5G rollout.
- AGR has resulted in massive dues of over ₹1.5 lakh crore that telecom companies like Bharti Airtel, Vodafone Idea, and others have to pay.
- Reduction of Customs Duty to zero for telecom manufacturing, with gradual increases for 4G and 5G products.
- Urgency in renewing Customs Duty exemptions for submarine cable vessels to prevent future cost increases.
- Exemption of Service Tax on additional Adjusted Gross Revenue (AGR) liabilities is demanded because it is crucial for the recovery of the industry’s financial health and ensuring efficient 5G rollout.
- Spectrum Allocation:
- Prioritization of 6 GHz spectrum for 5G deployment in India.
- Strategic planning of 6 GHz spectrum for future 6G technologies, aiming at enhancing network quality, coverage, and supporting a range of advanced applications like telemedicine and smart cities.
- Telecommunications Act 2023:
- Introduction of the Telecommunications Act 2023, addressing critical issues such as Right of Way (RoW) for telecom infrastructure.
- Standardization of RoW rules across states, simplification of licensing processes, and delinking telecom infrastructure from property taxes to facilitate faster deployment of 5G services.
- Implementation of Reforms:
- Emphasis on the swift implementation of regulatory reforms to minimize bureaucratic delays and operational hurdles.
- Creation of a conducive environment for telecom investments by ensuring clarity and uniformity in RoW regulations, thereby improving the Ease of Doing Business (EoDB) in the sector.
Conclusion: The Government should prioritize the swift implementation of proposed policy reforms, including the reduction of levies and taxes, clarity in revenue definitions, and spectrum allocation for 5G and future 6G technologies. Timely execution will bolster investor confidence, accelerate infrastructure development, and enhance digital connectivity nationwide.
Mains PYQ:
Q Cyber warfare is considered by some defence analysts to be a larger threat than even Al Qaeda or terrorism. What do you understand by Cyberwarfare? Outline the cyber threats which India is vulnerable to and bring out the state of the country’s preparedness to deal with the same. (2013)
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