By Mr. Amit Sharma, EVP and President, Asia – American Tower Corporation
The Cabinet Committee of Infrastructure (CCI) recognized the importance of ‘telecommunication towers sector’ and included it in the Harmonized Master list of Infrastructure sectors vide its gazette notification dated 27th March, 2012. However, till date, no tax or fiscal benefit has been granted to Telecom Infrastructure sector.
2016 was power packed with significant developments such as 4G rollouts across the nation which jump started the data growth in the country. Meeting the rapidly growing demand for 4G data will require Carriers to continue to upgrade networks in 2017/18 and in turn this will need significant rollout of new and infill sites.
Unprecedented increase in adoption of digital services like payments, e-governance and entertainment will necessitate further investments in the telecom infrastructure sector. Without infrastructure status benefits like tax / financing benefits, the industry will not be able to afford these long payback investments. Hopefully, the new budget will correct that.