To become sustainable in the long run, the telecom industry is seeking adequate spectrums at reasonable prices with easy payment norms, rationalisation of taxes and levies and reduction in burden on the companies due to old litigations, a top official of Vodafone Idea NSE 14.69 % Ltd (VIL) said on Thursday. VIL Managing Director and CEO Ravinder Takkar while speaking at India Mobile Congress said recent reforms announced by the government are steps towards addressing financial stress and legacy issues in the sector.
" Looking at the decade ahead, there is a need to make industry sustainable in the long run...towards this future a few more steps taken more quickly will achieve this goal. Industry players are talking about first making adequate spectrum available at reasonable prices at easy payment terms. Second, rationalizing taxes and levies in line with the recommendation of NDCP 2018 and third, reducing the heavy burden of old legacy litigation in the sector," Takkar said.
He said once these issues are resolved, the industry will look at improving average revenue per user (ARPU) from "abysmally low levels".
Last month, all private telecom companies increased their mobile calls and services rates by 18-25 per cent but a couple of telecom players want it to go up further to take ARPU above Rs 300 per month.