Telecom associations condemn TEMA proposals of one-time levy

The telecom bodies have condemned the Telecom Equipment Manufacturers' Association of India's (TEMA) suggestion of levying a one-time tax on telecom towers for using diesel to power their towers in order to exploit the subsidies.

Recently, TEMA wrote to the prime minister alleging that telecom towers were guzzling up to Rs4,300-crore worth of subsidised diesel every year. This diesel, according to TEMA, is meant for the rural poor, farmers and bulk transport systems.

The associations – Cellular Operators' Association of India (COAI), Association of United Service Providers of India and Towers and Infrastructure Providers' Association (TAIPA) - condemned TEMA's allegations and accused it of sensationalising the issue.

''It is quite unfortunate that TEMA is trying to sensationalise the issue in a highly irresponsible and mischievous manner and the statements made by TEMA are misleading, uncalled for, and devoid of any merit. It is analogous to suggesting that railways run trains on diesel to exploit subsidies,'' the associations said.

''They are unnecessarily trying to imply that telecom operators pursue subsidies and profits relentlessly. This is simply not the case,'' the joint statement added.

India's telecom operators provide an infrastructure that is central to India's economy and contribute significantly to the GDP of the economy. They help deliver world class mobile services at the lowest prices in the world despite lowest revenues per user.