The Telecom Sector has been the biggest contributor to the government’s revenue for the last two years, with the huge amount received through the auction for 3G, BWA spectrum etc.  If the auction is conducted for the 2G Spectrum being released by the private telecom companies whose licences have been cancelled by the Supreme Court recently, then Telecom will be first in revenue earning for this year also.

DOT wants to save the private telecom companies by introducing f tax reliefs, abolishment of service tax on internet, broadband services etc. Tax exemptions are also suggested by the DOT for the telecom manufacturing units. We are not against these, but when we demanded these concessions for the incumbent operators, BSNL and MTNL, the DOT was silent. But when the private companies have demanded, the DOT is proposing the same. My suggestion is that in addition to these reliefs, BSNL and MTNL should be given special status and additional tax reliefs as the incumbent operators, who are providing services in the most interior areas of the country as part of implementing the government’s commitment for universal service, despite heavy loss.

DOT has also recommended Infrastructure status for telecom, which will benefit the sector in many ways. The government which is in a quandary due to the corruption cases and many observations and judgment of the Supreme Court , will have to tread carefully. But again, I want to assert that the government should always remember the pioneer work done by the DOT/BSNL/MTNL in universalizing the service and bringing it to all corners of the country during the last six decades, when there was no private company.