NEW DELHI: Reliance Jio chairman Mukesh Ambani on Thursday made it transparent that there can be no let-up in the intense tariff war throughout the telecom industry, while rivals Vodafone-Idea and Airtel - reeling under heavy losses because of the brand new entrant's dirt-cheap client plans - sought the government's support via decrease taxes and more straightforward spectrum fees to make trade financials sustainable.
Speaking at the India Mobile Congress here, Ambani stated Jio will continue to make bigger, and with reasonably priced price lists. "Imagine what this 5-in-1 (device with access to music, video content, camera and internet) means for the aspirational explosion in India. And, imagine how it can transform India when it becomes 6-in-1... with Indians getting the revolutionary power of first artificial intelligence in their hands. All this at only Rs 100 per month," Ambani stated.
Ambani's enthusiasm used to be not matched by competing and older telecom companies, which spoke about tough monetary position in the sector.
Bharti Airtel chairman Sunil Mittal stated taxation in the industry stays very prime, virtually identical to fees on tobacco avid gamers, who fall under the so-called 'sin-tax' regime. "On one hand, it's a very important industry that is enabling Digital India, but on other hand, this industry remains taxed like the tobacco industry. This really needs to be resolved."
Mittal stated while the brand new telecom policy makes it transparent that earnings maximisation is not the target of the government, there are nonetheless nagging issues wherein the industry's funds are locked. "The question is why are the industry and telecom department locked in hundreds of litigations around only one objective - of revenue maximisation. This also needs to be taken up in the right spirit... (also) spectrum prices should become affordable, taxation, licence fee and spectrum charges should become reasonable and affordable. The GST is at 18%, which is almost at the highest tax bracket," stated Mittal.
Vodafone also spoke about difficult monetary stipulations. "Tariffs are unaffordably low... Whole industry is bleeding, we are trying to re-discover how to bring costs down," Vodafone-Idea CEO Balesh Sharma stated. "It is bad," he stated, when requested in regards to the monetary position of the industry.
The telecom industry currently reels under a debt of over Rs 7 lakh crore and telecom secretary Aruna Sundararajan stated that the government is taking a look at providing relief to the industry via a sequence of tasks. This could come with rationalisation of one of the taxes.
Speaking at the India Mobile Congress here, Ambani stated Jio will continue to make bigger, and with reasonably priced price lists. "Imagine what this 5-in-1 (device with access to music, video content, camera and internet) means for the aspirational explosion in India. And, imagine how it can transform India when it becomes 6-in-1... with Indians getting the revolutionary power of first artificial intelligence in their hands. All this at only Rs 100 per month," Ambani stated.
Ambani's enthusiasm used to be not matched by competing and older telecom companies, which spoke about tough monetary position in the sector.
Bharti Airtel chairman Sunil Mittal stated taxation in the industry stays very prime, virtually identical to fees on tobacco avid gamers, who fall under the so-called 'sin-tax' regime. "On one hand, it's a very important industry that is enabling Digital India, but on other hand, this industry remains taxed like the tobacco industry. This really needs to be resolved."
Mittal stated while the brand new telecom policy makes it transparent that earnings maximisation is not the target of the government, there are nonetheless nagging issues wherein the industry's funds are locked. "The question is why are the industry and telecom department locked in hundreds of litigations around only one objective - of revenue maximisation. This also needs to be taken up in the right spirit... (also) spectrum prices should become affordable, taxation, licence fee and spectrum charges should become reasonable and affordable. The GST is at 18%, which is almost at the highest tax bracket," stated Mittal.
Vodafone also spoke about difficult monetary stipulations. "Tariffs are unaffordably low... Whole industry is bleeding, we are trying to re-discover how to bring costs down," Vodafone-Idea CEO Balesh Sharma stated. "It is bad," he stated, when requested in regards to the monetary position of the industry.
The telecom industry currently reels under a debt of over Rs 7 lakh crore and telecom secretary Aruna Sundararajan stated that the government is taking a look at providing relief to the industry via a sequence of tasks. This could come with rationalisation of one of the taxes.
Telecom tariff war to continue, says Mukesh Ambani
![Telecom tariff war to continue, says Mukesh Ambani]()
Reviewed by Kailash
on
October 26, 2018
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