TRAI To Invest 1 Lakh Cr To Fuel Telecom Growth

TRAI To Invest 1 Lakh Cr To Fuel Telecom GrowthThe Telecom Regulatory Authority of India (TRAI) has made announcement about the recommendations on "Telecommunications Infrastructure Policy" with the intention to generate a favorable atmosphere for the growth of the telecommunication infrastructure in India.

In a statement, TRAI stated, "The cost of implementations of the recommendations is estimated at about Rs. 1-lakh crore over the next ten years. This is expected to give a return of almost ten times the investment."

TRAI has suggested preferential market access for locally produced products in the segment by pushing for around 80% utilization of such products in networks and user equipment by the next ten years (2020).

The regulatory authority has hinted bonuses for the service suppliers who make use of indigenously produced equipment.

The regulator also said that export of domestic items must be actively promoted and telecommunication should be included in grant-in-aid plans and two-sided trade deals.

It has suggested introduction of a telecommunication manufacturing fund with an opening sum of around Rs 3,000 crore for offering up venture capital to Indian product makers in the form of equity and soft loans.

TRAI also suggested that telecommunication infrastructure supplier firm should be lengthened tax gains under Sec. 80 IA, whilst power distribution firms in the countries should be provided grid power connectivity on priority for telecom tower locations.