Telecom Operators Seek Budget Relief: Propose Licence Fee Cuts, GST Waivers

• Telecom operators have urged the Union Finance Ministry for Budget relief, citing high licence fees as a major financial burden.
• They propose reducing licence fees from 3% to 0.5-1% of Adjusted Gross Revenue (AGR) and pausing contributions to Digital Bharat Nidhi (5% of AGR).
• Telcos also seek GST waivers on regulatory payments like licence fees, spectrum usage charge, and spectrum payments.
• They requested permission to use input tax credit for GST dues on licence fees and spectrum usage charges, and recalibration of spectrum pricing.
• The Department of Telecommunications (DoT) proposed one-way spectrum sharing, allowing operators to monetise and optimally deploy unused radio waves.

Why It Matters: Telcos seek significant financial relief in the Union Budget, including lower licence fees and GST waivers.