$\"\"$ NEW DELHI\/KOLKATA: A 10% customs duty on specified telecom equipment imports envisaged under the Union Budget could raise the cost of setting up high-speed information highways by as much as $30 million annually, another trigger for telcos to raise data tariffs to offset a margin squeeze.
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The budget proposals, presented by Finance Minister Arun Jaitely<\/a> Thursday, sought to impose duty on certain specified telecom equipment, which according to experts, mostly falls in the category of 3G as well as the 4G equipment, including switches and broadband equipment.
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\nThese equipment will form the bulk of the telecom operators’ expenses as most, including Bharti Airtel, shift their annual capex towards the next generation technology in place of what they refer to the ‘legacy 2G’ networks.
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Cellular Operators Association of India<\/a> (COAI<\/a>), the GSM industry lobby body, said it was an expensive measure which could jack up network rollouts costs for an already debt-ridden industry.
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\n\"Cost of rolling out 3G and 4G networks could rise sharply in coming months if the duty on specified telecom gear is imposed, although we are still awaiting clarity from the government on the list of specified items,\" Rajan Mathews, director general of COAI, said.
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\nPrashant Singhal of consultancy firm EY said that most of the equipment to attract the duty would fall in the purview of 3G and 4G which will “definitely raise the costs of setting up new networks,” and the operators, in turn, could raise data rates to offset the effect.
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\nIndustry experts say that the industry is likely to spend anywhere between $2-3 billion in the next four years on networks which typically last a decade. “If you amortise the investment over 10 years, then it increases the annual cost by $ 20-30 million,” Singhal explained.
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\nWhile agreeing that network rollout costs of mobile operators could jump if the 10% import duty is slapped on specified telecom products, a senior executive of a leading European networks vendor estimated a far sharper cost damage to telcos that the $30 million estimated by some.
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\n\"We still await clarity on the telecom products that will attract 10% duty, but the stakes are big for global network vendors,” he said.
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\nCOAI’s Mathews was also disappointed over the budget proposal to bring mobile advertising under the service tax net. “It would push up mobile advertising costs and make it unpopular, which in turn, could impact advertising revenue for mobile operators\".
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\nHe however was enthused by opportunities which could arise to telecom operators in the government’s proposal for building smart cities. \"The generous allocations to build smart cities, increase rural broadband penetration and encourage all government departments to go online would generate indirect benefits for the telecom industry\".
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\n“The Prime Minister has a vision of developing ‘one hundred Smart Cities’, as satellite towns of larger cities and by modernizing the existing mid-sized cities. To provide the necessary focus to this critical activity, I have provided a sum of Rs 7,060 crore in the current fiscal,” Jaitley said in his budget proposals.\n\n<\/body>","next_sibling":[{"msid":38086615,"title":"Alcatel-Lucent bags global LTE metro small cell deal from Vodafone","entity_type":"ARTICLE","link":"\/news\/alcatel-lucent-bags-global-lte-metro-small-cell-deal-from-vodafone\/38086615","category_name":null,"category_name_seo":false}],"related_content":[],"msid":38142002,"entity_type":"ARTICLE","title":"Budget 2014: Customs duty could push up network costs, lead to data tariff hikes","synopsis":"10% customs duty on specified telecom equipment imports could raise the cost of setting up high-speed information highways by as much as $30 million annually","titleseo":"budget-2014-customs-duty-could-push-up-network-costs-lead-to-data-tariff-hikes","status":"ACTIVE","authors":[],"Alttitle":{"minfo":""},"artag":false,"artdate":"2014-07-11 06:15:52","lastupd":"2014-07-11 09:05:15","breadcrumbTags":["Cellular Operators Association of India","Arun Jaitely","Telecom Equipments","Custom duty","COAI","Telecom Budget 2014","EnY"],"secinfo":{"seolocation":"budget-2014-customs-duty-could-push-up-network-costs-lead-to-data-tariff-hikes"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2014-07-11" data-index="article_1">

网络2014年预算:关税可能推高成本,导致数据关税上调

10%对指定的电信设备进口关税可以增加设置高速信息公路的成本高达3000万美元

更新于2014年7月11日09:05点坚持

新德里/加尔各答:对指定的电信设备进口关税10%设想在欧盟预算可以提高建立高速公路的信息的成本高达3000万美元,每年电信公司来提高数据的另一个触发关税以抵消紧缩幅度。

提出的预算提案,财政部长阿伦Jaitely周四,试图把责任强加于某些指定的电信设备,据专家们说,大多属于类别3 g和4 g的设备,包括交换机和宽带设备。

这些设备将形成大量的电信运营商的大部分费用,包括Bharti Airtel年度资本支出转向下一代技术代替他们所说“遗留2 g的网络。

印度手机运营商协会(COAIGSM行业游说机构)说,这是一个昂贵的措施可以提高网络的发布成本已经债台高筑的行业。

”推出3 g和4 g网络的成本可能会在未来数月内大幅上升如果实施电信设备指定的关税,虽然我们公司仍在等待政府的清晰的指定项目,”Rajan马修斯,主任COAI,说。

Prashant Singhal咨询公司是说大多数的设备来吸引的责任将落在3 g和4 g的范围将“绝对提高建立新网络的成本,”和运营商,反过来,可以提高数据速率来抵消效果。

业内专家表示,该行业可能会花费2 - 3美元之间在未来四年在网络上通常最后的十年。“如果你分期偿还投资超过10年,然后增加20 - 30美元的年度成本几百万,”辛格尔解释道。

同时同意网络推出的移动运营商的成本可能会如果指定的10%进口关税是对电信产品,一位高管的欧洲领先的网络供应商成本损失要大的电信公司估计3000万美元的估计。

“我们仍在等待明确的电信产品会吸引10%的关税,但风险大的全球网络供应商,”他说。

COAI预算提案的马修斯也失望将移动广告服务税网。“这将推高移动广告成本,使其不受欢迎,这反过来会影响广告收入为移动运营商”。

他不过是热情的机会可能出现电信运营商构建智能城市政府的提议。“慷慨拨款建立智能城市,增加农村宽带普及率和鼓励所有的政府部门上网会产生间接利益的电信行业”。

“总理的愿景发展“一百智能城市”,作为卫星城镇现代化的大城市和现有的中型城市。提供必要的焦点这一重要活动,我提供了一笔7060卢比在当前财政,”杰说在他的预算提案。