Direct benefits: The Budget has introduced a viability gap funding for telecom towers, which would help in increasing telecom density in rural areas. The previously launched USO fund scheme had helped telecom development in the rural sector. However with this budgetary allocation, growth of towers in rural areas is likely to accelerate and improve rural connectivity.
Mobile phone parts have been exempted from custom duty which is likely to decrease the prices of handsets manufactured in India.
Indirect benefit: Government has announced enhanced budgetary allocation to healthcare / skill development, mobile (non-stationary) training centers and plan to use Aadhar for direct transfer of subsidy to end consumers. These are likely to indirectly benefit telecom sector.
Negatives for Telecom Sector: The telecom tariffs are likely to go up by 2 per cent with increase in service tax. The additional cost to the telecom consumers is likely to be around Rs2,500 crore.