Vodafone welcomes government’s initiatives to support telecom sector growth

NEW DELHI:  Country’s second largest wireless operator by subscribers, Vodafone India has welcomed recent initiatives by the government to harmonize spectrum in select bands and to reduce the subscriber usage charges (SUC).

Commenting on the proposed spectrum harmonization, Sunil Sood, MD & CEO, Vodafone India, said, “Harmonizing the available spectrum to offer additional quantum via auction is another progressive step by the Government (after spectrum trading and sharing), to maximize efficiency of this precious resource. With Digital India as the guiding vision and consumer demands evolving from voice to data, the telecom industry increasingly needs more of quality spectrum to be made available at reasonable prices. An efficient spectrum also directly results in providing customers with a superior network experience”

The initiative to reduce SUC from 5% to 3% of adjusted gross revenues (AGR) brings in much needed relief to the highly capital intensive telecom sector.

Commenting on the reduction in SUC charges, Sood said, “The telecom sector is severely debt laden (more than Rs. 3 lakh crore at last count and growing). This reduction in SUC charges from 5% to 3% will free cash-flows which can be invested towards further enhancing network and customer experience. It is a positive step that benefits the industry and is also in line with the TRAI’s recommendation of having a uniform, minimal SUC charge for all spectrum across the industry.”