According to the company, if the spectrum price is added and telecom charges are added to it, then the government has to pay 58% of the industry revenue. That is, the government has to pay Rs 58 for every Rs 100 earned.
Vodafone-Idea’s breath is stuck. The case is of Indus Tower which provides towers for this company’s network. Indus Tower has said that all its dues should be returned before November, otherwise the service will be affected. Indus Tower, along with returning the dues, also said that the rent of the tower should be paid every month so that there is no backlog later. After that the question arose that vodafone-idea If he did not return the money of Indus, then after November Mobile Will the network shut down? This question is still plaguing the customers. Meanwhile, Vodafone-Idea ie Vi CEO Akshay Mundra has appealed to the government to give relief from hefty charges and taxes so that the company gets a chance to move forward.
Mundra has urged the government to cut huge charges so that Vodafone-Idea can ramp up cash generation and use it to develop 5G networks. According to the company, if the spectrum price is added and telecom charges are added to it, then the government has to pay 58% of the industry revenue. This means that if the company earns Rs 100, then it has to pay Rs 58 to the government, Mundra said. Mundra demanded the government to cut it.
What the CEO of Vi Said
Akshay Mundra, CEO of Vi said at the Mobile Congress, “Mobile tariffs are among the lowest in the country while India’s telecom sector has to pay the highest tariffs in the world.” He said that if the price of spectrum is included, converted into annuity value and calculated as revenue percentage, then this expenditure comes to 58% in which 30 percent revenue levy is GST 18 percent and license fee or spectrum. Usage charge is inclusive of 12 percent.
reduce the burden of companies
Mundra urged that the government should reduce the duty burden on telecom companies so that cash generation can be increased and its investment can be done in the company. In such times, the need for this investment also increases because there is a great need to invest money in wireless broadband network. Mundra’s statement has come at a time when the company is facing huge problems in starting 5G service. The company is also facing problems in finalizing the contract. The vendor has told Vi that first 4G dues should be paid, only after that any further work will be done on the 5G contract.
Vi’s two rival companies are Airtel and Reliance Jio. There is suspense on when Vi’s 5G will start, while Airtel has launched the service in 8 cities of the country and Reliance Jio is going to start 5G service on Diwali.