22 February 2011

Telecom Sector Preview: Union Budget 2011-12 : Angel Broking

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Telecom
The telecom sector is currently facing lot of challenges on the competitive and regulatory fronts, relating to
tariffs, M&As and MNP implementation.
Telecom is among the heavily taxed sectors in India, attracting various levies such as license fees and
spectrum charges. A uniform tax structure would help in reducing operational costs, in turn lowering tariffs,
which is necessary for the next leg of growth to be led by rural India.
The budget could announce indirect incentives for the sector by reducing the duty on capital/equipment
imports or packages, which would boost disposable income levels and spur overall consumption, in turn
proving to be positive for the telecom sector.

Top Pick
Bharti Airtel


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