Telecom Lead India: Bharti Airtel CEO Sanjay Kapoor said life
of the telecom sector does not wholly depend on the budget pronouncement – only
the sentiment needs to be positive. The industry hopes this budget will be a
harbinger of a healthy telecom policy, which would be inclusive and enable
viability of the industry at large.
When Pranab Mukherjee quoted from Shakespeare’s Hamlet to
joke about the tough job FM has towards ensuring the interest of a range of
stakeholders – one couldn’t help but think of the “har friend zaroori hai,
yaar” reference and empathize with the challenge involved in leading this
mammoth task.
Given slowing growth of the economy and rising inflation,
the Finance Minister has had a difficult job of devising the country’s economic
plans for FY2012-13. Despite challenges, the Government has been able to
deliver a practical and inclusive budget for the next fiscal – one that
reinforces the treatment of the Union Budget as a process rather than an event.
The FM’s strategy towards fiscal consolidation will play an
eminent role in containing challenges faced by the economy and contribute
towards 7.6 percent GDP growth projection for 2012-13. With ongoing long term
focus on planned fiscal deficit reduction, the budget proposes noteworthy
reforms across manufacturing and infrastructure which should boost
employment.
Reforms announced are expected to add thrust to agriculture
and power sector growth and should contribute towards revival of the aviation
industry. Enhanced focus on Governance as evident in measures like UID funding
will surely enhance the disposable income in the rural areas and prevent
leakages within the system. Reduction in subsidy is a welcome move, but the
process of implementation needs to be detailed out further. Other laudable
effort lies in definite move towards, direct tax code, GST regime, FDI in
multi-brand retail – but it will be meaningful to set a deadline for the
same.
account for 30 percent of the telecom services revenue. The rise in service tax
from 10 percent to 12 percent will increase cost of services to customers and
also impact the P&L of telecom companies. As a highly taxed industry, this
will certainly have a further impact on the consumer.
We see proposals on mobile based fertilizer subsidy
tracking and heightened IT enablement as factors that will as opportunities to
drive the growth of ICT. Additionally, FM’s recommendation for gap funding of
telecom towers, cables and optic fibres should lead to reduction in cost of
capital for telecom infrastructure. Reduction on duties on mobile parts should
enhance affordability and stimulate demand for mobile services across the
country,” said Sanjay Kapoor, CEO, Bharti Airtel, India & South Asia.
However we must keep in mind that the life of the
telecom sector does not wholly depend on the budget pronouncement- only the
sentiment needs to be positive. We hope this budget will be a harbinger of a
healthy telecom policy, which would be inclusive and enable viability of the
industry at large,” Kapoor added.
Budget
does not have anything specific for sector: Airtel chairman Sunil Mittal
Bharti Airtel chairman Sunil Bharti Mittal said the Union
Budget 2012-13 does not contain anything specific for the telecom sector, which
is awaiting the new National Telecom Policy (NTP) scheduled to be announced in
June.
