Page 154 - SAMENA Trends - June-July 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

there...need to ensure we implement them", he said. that soft loans at a marginal cost lending rate (MCLR)
Addressing a PHD Chamber of Commerce and Industry be given to telecom companies using GST input credits
(PHDCCI) webinar on 'Telecom sector in COVID-19', the as collateral and that the high burden of regulatory
TRAI chief stressed on the need to promote domestic levies also be rationalized by reducing license fee and
manufacturers of hardware, signaling equipment, fiber SUC payouts immediately,” COAI director general Rajan
and other equipment. Clear targets need to be set on Mathews wrote in a letter to Sitharaman. ET has seen
how to proceed in this sector, he asserted, adding that a copy of the letter. The telcos have urged the FM to
telecom being a "sensitive sector" makes it imperative expedite steps to cut SUC to 3% of a telco’s adjusted
for India to become sovereign in terms of information gross revenue (AGR) and reduce license fees to 3% of
security. "The National Digital Communication Policy revenue from 8% now. Further, the phone companies, in
of 2018, where TRAI had given lot of inputs, we have their letter to the FM, have reiterated their demand that
three areas...one is connecting India, second having all telco payments towards spectrum debt, license fees
software and services on top of that, and third digital and SUC should not be classified as `services’, and
sovereignty, and therefore domestic manufacturing accordingly, must not attract any goods & services tax
of telecom equipment must take place...that has (GST). In addition, they have sought exemption from
not happened," he said. Sharma noted that while the service tax on the amounts of license fees and SUC
country had performed well on software front, building payable in compliance with a Supreme Court order.
strong and unmatched platforms for digital identity Mathews has pointed out to the FM that since the
and digital payments, there is a need to ensure flow of outbreak of Covid19, the load on telco networks has
investments into digital infrastructure in the country. "I seen an exponential surge, especially as vast swathes
agree, that unless we provide opportunities for our own of corporate staff continue working from home and
domestic players, we will not go anywhere," he said. both government agencies and private companies
(June 29, 2020) m.economictimes.com also extensively use wireless internet networks to
stay virtually connected. “Ensuring continuity of
India’s top telcos -- Reliance Jio Infocomm, Bharti Airtel these (telecom) services is of utmost importance in
and Vodafone Idea -- have sought finance minister these challenging times, which is why, the criticality
Nirmala Sitharaman’s urgent intervention, urging the of immediate relief measures from the government,”
government to boost the liquidity levels of the debt- Mathews said. The telecom industry’s call for relief
laden telecoms industry by offering a combination from the finance ministry comes even as the Supreme
of soft loans against GST input credits and cutting Court’s final views on the AGR case is awaited. The
key levies such as license fees and spectrum usage nation’s top court will hold the next hearing on the
charges (SUC). The Cellular Operators Association of AGR case in the third week of July, by when the telcos
India (COAI), in a letter to Sitharaman, dated June 26, – Bharti Airtel, Vodafone Idea and Tata Teleservices
has underlined the criticality of such pending relief -- and the government have been directed to finalize
measures, saying these are absolutely essential for a roadmap for payments of balance license fee and
the cash-strapped sector to grapple with the adverse SUC dues, which may also include an upfront payment
economic fallout of Covid19, which continues to clause. The impacted operators have sought 20 years
spread rapidly across the country. The COAI represents to clear their AGR dues, but the apex court has said
Jio, Airtel and Vodafone Idea. “Given the adverse they need to make some upfront payments to avail of a
impact on the economy and operations of the digital deferred payment mechanism.
communications industry due to Covid-19, we request (June 28, 2020) m.economictimes.com

The Italian Prime Minister Giuseppe Conte has said the infrastructure company, which would lease capacity to
government could raise its stake in Telecom Italia (TIM) service providers on an equal basis. Responding to a
as it looks to encourage a tie-up with wholesale network query about Grillo’s suggestion, the Prime Minister is
operator Open Fiber. The government has an interest cited by Reuters as saying that the ‘idea is good … it is
Italy in both firms via state lender Cassa Depositi e Prestiti one of the options we may consider’.
(CDP). Open Fiber is a joint venture between CDP and
(June 23, 2020) commsupdate.com
utility group Enel, but investment fund Macquarie has
put forward an offer for Enel’s stake. Italian MP Beppe Italian wireless ISP GO internet has launched an appeal
Grillo recently called on CDP to increase its interest in with the Council of State (Consiglio di Stato, CdS) in an
TIM to around 25%, which would be roughly the same attempt to overturn a decision to not renew its 3.5GHz
as TIM’s current largest shareholder, Vivendi of France. wireless broadband license. In July 2018 3.5GHz
CDP could then be used as a ‘pivot’ to unite TIM and concessions held by GO and others including Linkem
Open Fiber and create a single nationwide broadband and Tiscali (since sold to Fastweb) were renewed

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