COAI Director General Rajan Mathews writes to DoT for floor price on tariffs

New Delhi: Mobile operators association, COAI, has suggested steps to facilitate a reduction of financial stress on the industry in wake of the AGR payments where it has sought floor price for telecom tariffs be introduced from April this year.

TRAI has now initiated a consultation process on floor pricing. “Our proposal is that a floor price needs to be made effective immediately (say from 1st April 2020),” COAI Director General Rajan Mathews said in a letter to DoT Secretary Anshu Prakash.

For AGR related payments COAI seeks reimbursement of credit due to telcos from the government through adjustments that can help companies meet AGR payment.

“Government needs to allow set-off of GST credits lying with the government. Further, after the GST set-off, the payment of balance amount of interest, penalty, and interest on penalty be allowed in a staggered manner. It is requested that a moratorium of 3 years be provided, as we expect that it will take at least that much time to recover the health of the sector, followed by a payment tenure of 15 years at a simple interest of 6 percent,” the letter said.

The amounts payable under the Supreme Court judgment, after mutual discussion may be frozen to avoid a recurring claims of interest, penalty, and interest on the penalty.

The telecom industry has invested over Rs 10.44 lakh crore in setting up world-class mobile networks over the last 20 years and has committed around Rs 3.68 lakh crore in spectrum through auctions since 2010. (IANS)

Also Read: COAI seeks bare minimum regulation from TRAI: Rajan Mathews

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