Akshaya Moondra, the CEO of the ailing Vodafone Idea (Vi) said that Indian telecom companies charge the lowest tariffs in the world but companies face the highest levies than anywhere else.

Moondra called upon the government to reduce levies so that telecom companies can improve cash generation through operations and increase investments in capital-intensive 5G networks.

Government levies amount to 58% of industry revenues including the price of spectrum, he added.

“In a country where tariffs are the lowest, India’s telecom industry has the highest levies anywhere in the world…if one includes the price of spectrum, converts it to an annuity value and calculates that as a percentage of revenue, that’s an additional 28% of industry revenue over and above the more visible 30% (of revenue) element, comprising GST (18%) and licence fees/spectrum usage charges (12%),” Moondra said on Day 3 of India Mobile Congress 2022 on Monday.

He added that it is imperative that government partially slash levies so that telecos can deploy additional cash towards next-generation wireless networks.

He also urged the government to to take more steps to ease right of way (RoW) rules to boost 5G deployments.

“Data being carried on 5G networks is humongous and this requires fibre, but the RoW regulations remain very difficult, combined with bureaucracy, red tape…while the government has taken some steps but if 5G is to be successful in India, this RoW mess that exists must be sorted out,” he addd.