JioSpaceFiber to target global mkts after India

livemint.com:

₹75,700 crore universal service obligation (USO) fund to be used for telcos’ capex or investments on networks, which is 5% of the telcos’ overall adjusted gross revenue, and is part of the 8% licence fee they pay to the government. The fund is used for ensuring connectivity in places where there is none, primarily in far flung areas with tough terrains and poor access.

“That 5% should be zero because the government should let the telcos use that for investments, give it as incentive rather than parking it in the fund that is giving no benefit. Why should the government subsidize? Well, because it’s the same government that’s asking operators to go ahead to put technology and services in different markets across the country." The firm which launched its Jio Bharat 5G phones for ₹999 as a bundled plan with the device, said the USO fund should be used to subsidize the cost of smartphones and tariff plans for individual users, to drive more digital inclusion among the 250 million feature phone users.

“Anyone who cannot afford connectivity or monthly rent must be given a device and service model by leveraging the USO funds," Oommen said. While starting price for 5G smartphone is down to ₹10,000 from about ₹15,000, this step can reduce even further, he said.

While adoption will depend on the tariffs, baseline tariffs been increased by nearly 50-70% by all carriers, and some like Airtel and Vodafone Idea have said that tariffs must rise for telco Arpus to become sustainable. Jio’s Oommen however said that the industry should look at the right pricing in order to elevate 2G users to 4G or 5G, instead of thwarting the upgrades by raising tariffs.