Lok Sabha Question No. 242 (STARRED), answered on 2017-08-02
Subject: Reduction in Levies for Auctioned Spectrum
Ministry: COMMUNICATIONS
Asked by: K. ASHOK KUMAR

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA STARRED QUESTION NO.242 TO BE ANSWERED ON 2 ND   AUGUST, 2017

## REDUCTION IN LEVIES FOR AUCTIONED SPECTRUM

- *242. SHRI K. ASHOK KUMAR:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  the  Telecom  Regulatory  Authority  of  India  (TRAI)  has  urged  the Government  to  favourably  consider  its  recommendation  pertaining  to  reduction  in levies and relaxation of payment period for auctioned spectrum to Telecom Service Providers  (TSPs),  if  so,  the  details  thereof  and  the  reaction  of  the  Government thereto;
- (b) whether  the  said  recommendation  would  help  ease  the  financial  burden  of TSPs and make their service affordable and if so, the details thereof;
- (c) whether the TRAI has proposed reduction of GST rate from eighteen per cent to five per cent on telecom sector and treat the same as core infrastructure sector; and
- (d) if so, the details thereof and the reaction of the Government thereto?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a) to (d) A Statement is laid on the Table of the House.

## STATEMENT TO BE LAID ON THE TABLE OF THE LOK SABHA IN RESPECT OF PARTS  (a)  TO  (d)  OF  LOK  SABHA  STARRED  QUESTION  NO.  242  FOR  2 ND AUGUST, 2017  REGARDING ' REDUCTION  IN LEVIES  FOR  AUCTIONED SPECTRUM '.

(a) Yes,  Telecom  Regulatory  Authority  of  India  (TRAI)  vide  D.O.  No.  14-03/2017F&EA  dated  23 rd June  2017  reiterated  its  earlier  recommendations  pertaining  to reduction  of  levies  and  relaxing  payment  period  for  auctioned  spectrum  to  Telecom Service  Providers  (TSPs),  etc.  for  consideration  of  Government.  The  details  are  as follows:

1.  To reduce the component of USO levy from the present 5% to 3% of AGR for all licences with effect from 1 st April 2015 as per TRAI recommendation dated 6 th January,  2015.    This  recommendation  has  not  been  accepted  by  the government so far.
2.  The SUC for all auctioned spectrum should be at a flat rate of 3% of AGR of wireless services. This recommendation has already been accepted before the 2016  Spectrum  Auction  in  which  the  SUC  was  fixed  at  3%  of  AGR  for  all Spectrum including BWA put to auction.
3.  Change  the  deferred  payment  schedule  options  for  successful  bidders  to  18 equal  annual  installments  with  interest  in  18  years.  After  due  consideration Govt.  allowed  10  equal  annual  installments  with  interest  along  with  initial  2 years of moratorium period.

(b) As per TRAI these recommendations would help in minimizing the financial stress of the telecom companies and enable them to offer quality services to consumers at affordable prices.

(c) Yes, TRAI in its D. O. dated 23 rd June, 2017 has proposed that DoT may take up with Ministry of Finance (MoF) the issue of reduction in GST rate from 18% to flat 5% by declaring telecom sector as core infrastructure industry and economy enabler in India.

(d) The  Government  has  constituted  an  Inter-Ministerial  Group  (IMG)  to  examine  the systemic      issues  affecting  viability  and  repayment  capacity  in  telecom  sector  and  furnish recommendations for resolutions of stressed assets at the earliest. The IMG will also look into policy reforms and strategic interventions for the telecom sector.

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