Telecom sector dials Centre to reduce fees for the viability of 5G

Reliance Jio, Bharti Airtel, and Vodafone Idea, three of India's top telcos, have urged the government to cut levies, arguing that while they are spending big bucks to roll out 5G as quickly as anyone has ever seen it, they have no clear idea of the additional revenue that will come from these services.

The leading telecoms are requesting that the licence charge be reduced from 3% to 1% and that the 5% USO (universal service obligation) levy be postponed until the fund's remaining ₹53 crores is depleted through the industry association Cellular Operators Association of India (COAI).

ICRA predicts that the telecom sector will have ended FY2023 with debt of over ₹6.3 lakh crore.

Reliance Jio and Bharti Airtel have respectively covered over 400 and 500 cities and towns as they quickly roll out 5G services. Jio spent the most during the 5G spectrum auction last year, spending ₹88,078 crores on airwaves, compared to Airtel's ₹43,084 crores. Vodafone Idea has not yet disclosed its 5G rollout plans despite purchasing 5G airwaves for ₹18,799 crore.