Union Budget 2025-26: Here are the key challenges in the telecom sector

Key challenges

 

Sector burdened by high debt levels due to high spectrum costs, and low revenue realization due to relatively lower average revenue per user (Arpu), limiting the operators’ ability to invest in next-gen network infrastructure. Despite significant progress on infrastructure development, the gaps persist, particularly in rural areas. Digital ecosystem growth is facing the increasing risk of cyberattacks on consumers and enterprises alike. The country needs to have a robust policy and investments in cybersecurity measures to protect the customers.

 

Industry Ask

• Rationalisation of taxes, i.e. the Universal Services Obligation Fund (USOF), SUC, levy and reduction of license fees to reduce the burden on the service providers; release capital for infrastructure investments.
• Continuing the support for make-in-India to local companies, and providing an equal footing for global companies investing in the country.
• Expediting the central policy on SatCom.