Budget 2024: 5G rollout may be delayed, mobile recharge plans may be more expensive.
Finance Minister Nirmala Sitharaman presented the budget for the financial year 2024-25 on Tuesday. Where he announced several important issues. He said, this time the import duty of telecom components and printed circuit board assembly (PCBA) may be increased from 10 to 15 percent, which may cause problems for the telecom industry. And because of this, telecom services can become expensive.
An increase in the cost of telecom equipment will naturally affect telecom companies and increase operational costs. As a result, companies can make recharge plans expensive. Not only this, they may also slow down the 5G rollout compared to before.
It may be noted that the Cellular Operators Association of India (COAI) had demanded that the tariff be reduced to zero, so that the 5G roll out can be done faster. However, keeping in mind the various sectors, that demand was not met, as a result of which the import duty on PCBA has been increased in this budget.
What could be the impact of PCBA tariff hike?
Telecom sectors may face difficulties as network expansion becomes expensive after PCBA tariff hike and network expansion may slow down. However, if more 5G equipment is manufactured in India, this problem may be solved. Also, the quality and coverage of mobile services may suffer under these conditions and may have a significant impact on other areas, including rural areas.
Operators may postpone investment plans for some time due to this tariff increase. Besides, this can have a huge impact on local production as well. Because, after this tariff increase, local companies can increase their production by getting encouragement.
