New Delhi: The Cellular Operators Association of India (COAI), an organization of the telecom industry, has asked the government to ease the terms of payment of statutory dues on telecom companies.
The COAI said that in order to salvage the crisis-ridden sector, it is imperative that the government provide loans at a lower rate to telecom companies to meet their adjusted gross revenue (AGR) liabilities.
Apart from this, the implementation of minimum prices should also be done fast. The telecom industry is currently in deep trouble. The association has expressed concern that banks are not willing to take risks on the sector. The COAI said, “Banks should be given a clear message that the government stands with the sector.”
In a letter to Telecom Secretary Anshu Prakash, COAI Director General Rajan Mathews said, “Banks are not ready to take risks with the telecom sector right now.” Banks are refusing to issue new bank guarantees or renewal of bank guarantees to telecom companies. The telecom sector is being asked to reduce their debt. “
The letter stated that the mandatory requirement of financial bank guarantee for payment of license fee should be abolished. COAI said that if the Department of Telecommunications feels that financial bank guarantee is necessary, it should be reduced to 25 percent of the license fee. Along with this, the license fee should be reduced immediately from eight to three percent. Also, the spectrum usage charges should also be cut.
