Union Budget 2024-25: Here are the key challenges in the telecom sector

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Key challenges
 

 Costly spectrum auctions are straining financial resources of operators
 

 Sector experiencing financial stress due to debt burdens and low average revenue per user 
 

 Lack of adequate infrastructure in rural areas are hindering connectivity goals
 

 Substantial investments are required to protect networks and consumer data amid rising cyber threats

Industry ask

Reasonable pricing for spectrum auctions needed 
 

Incentives for digital literacy and affordable internet access are crucial for achieving universal connectivity
 

Seeks rationalisation of GST rates on telecom services and equipment, and a review of import duties
 

Incentives for R&D in technologies and indigenous equipment development can further boost innovation and help India become a global leader in telecom technology

Industry stands at a critical juncture. Addressing the need for strategic reforms that prioritise infra, spectrum management, along with regulatory simplification, will bolster connectivity across urban and rural India
 

 Vinish Bawa, Partner and Leader Telecom Sector, PwC India