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Telecom revenue sharing - looting



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[Topics under debate]: GOOD GOVERNANCE
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    The revenue sharing model that is being pushed by the Department of
Telecom (DoT) can be termed as "looting".  There is no justification for
it.

    Under this model valuable (hard-earned) revenue is taken from
efficient private sector companies and given to an inefficient
organization, DoT.  It justifies this looting by saying that it needs
this money for expanding the rural telecom; the devil is in the
details.  Why then, doesn't the DoT do away with license fees altogether
in the rural areas and encourage private companies to setup shop by
giving a tax holiday till eternity?!  What justification would it have
for collecting license fees elsewhere?

    We know that the private sector is far more efficient at using
capital, given enough competition, than the Government monopoly, DoT.
Why then tax the private sector only to give this money away to an
inefficient organization like the DoT.  Why not let the private
companies use this money to create more jobs, expand the infrastructure
at a more rapid rate, etc.?  The expansion of infrastructure itself
would create more jobs (wealth for Indians).  Instead, what we have now
is an agency, DoT, that is serving its own interests at the expense of
public welfare.  Unless the people of India are informed and stand up
against this atrocity and abuse of power at the polling booths, we are
doomed!!

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Sincerely,
Vamsi M.



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