High spectrum prices set for February auctions have raised fears of tariff hikes, with the industry asking for various tax benefits to offset the pressure. A debate is also currently in progress regarding the use of ‘white space’ for last mile broadband connectivity to complement the NOFN programme — a critical component of the Prime Minister’s ‘Digital India’ vision. The coming year will witness growth of 4G services in the country with Airtel expanding operations and Reliance Jio roll out.
“The finalised spectrum prices will put an upward pressure on the tariffs, and the only way Budget can help with this is by doing away with licence fee and spectrum usage charges, which we know is unlikely to happen. The government should consider giving us tax holidays,” said Rajan Mathews, Director General, Cellular Operators Association of India.
