Lok Sabha Question No. 1737 (UNSTARRED), answered on 2016-07-27
Subject: Incentives to Telecom Industry
Ministry: COMMUNICATIONS
Asked by: Shrirang Appa Barne, ANANDRAO  ADSUL, SHIVAJI ADHALRAO PATIL, SHRIKANT EKNATH SHINDE, VINAYAK BHAURAO RAUT

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO.1737 TO BE ANSWERED ON 27 TH  JULY, 2016

## INCENTIVES TO TELECOM INDUSTRY

1737.  SHRI SHRIRANG APPA BARNE:

SHRI ANANDRAO ADSUL:

SHRI ADHALRAO PATIL SHIVAJIRAO:

DR. SHRIKANT EKNATH SHINDE:

SHRI VINAYAK BHAURAO RAUT:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  setting  up  infrastructure  is  a  costly  affair  and  Telecom  Service Providers are under financial constraint/burden;
- (b) if so, the details thereof and the steps taken by the Government to reduce the financial burden;
- (c) whether the Government proposes to set up a single point for clearances and licences  which  require  multiple  submissions  for  various  agencies  and  to  provide subsidies for importing of equipment needed for improving broadband infrastructure and also provide subsidized electricity;
- (d) if so, the details thereof; and
- (e) the  steps  taken  or  proposed  to  be  taken  by  the  Government  to  bring  down tariffs for the end user?

## ANSWER

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

- (a) & (b) Telecom services sector is a highly capital intensive sector. As reported by Cellular Operator Association of India (COAI) on 25 th July 2016, telecom service providers  have  a  total  debt  of  more  than  Rs.  3,80,000  crores.  In  the  liberalized economic environment, investment decisions are taken by entrepreneurs on the basis of  techno-commercial considerations  like  cost  of  raising  fund,  return  on  investment etc.
- (c) & (d)    The requisite licenses for establishing active infrastructure are granted by  the  Department  of  Telecommunications.  Further,  setting  up  of  passive  telecom infrastructure only requires registration with the Department. The Government neither proposes to provide any subsidy for electricity nor for import of telecom equipment required for improving broadband infrastructure.
- (e) As  per  the  present  tariff  framework,  the  tariff  for  telecommunication access service in the country is under forbearance except for National Roaming and Rural Fixed Line Services. The telecom service providers have the flexibility to decide various tariff components for different service areas of their operation. Due to intense competition  prevailing  in  the  country,  the  tariff  for  telecommunication  services, particularly for the mobile telephony services has shown continuous downward trend. Tariffs in India for access services are considered to be one amongst the lowest in the  world.  In  those  service  segments  where  competition  is  considered  to  be  low, Telecom  Regulatory  Authority  of  India  (TRAI)  has  specified  ceiling  tariff  and  such tariffs  are  reviewed  as  and  when  considered  necessary.  Currently  for  National Roaming  Service  and  Leased  Circuits  tariffs  has  been  specified  by  TRAI.  In  April 2015, TRAI has brought down the ceiling tariff for national roaming service.

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