Cellular Operators Association of India (COAI) today indicated that profits of mobile telecom industry may shrink further on account of strict subscriber verification norms and levy of charges on erection of cell towers by the state governments.
Lack of infrastructure facilities in rural areas coupled with stringent norms of customer verification before providing services is a deterrent for mobile penetration in most parts of the country, COIA Director-General Rajan S Mathews said.Operators spend crores of rupees on customer verification process. Right now, activating one customer includes a minimum expense of Rs 600-700. Also, the state governments have started levying taxes on cell tower.In Delhi, till recently they (state government) were charging 50,000 per tower. It has now further been enhanced to Rs 5 lakh.These are going to kill our profitability, Mathews told PTI.
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