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GTL Infrastructure Ltd GIL

. Telecom scenario in India. Growth of telecommunication in India is driven by wireless telephonyExplosive Growth Current approx 85 million subscribers Target by 2008 approx 250 million subscribers Category C" circles continue to witness the highest rate of growth . *Feb 2006 da

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GTL Infrastructure Ltd GIL

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    5. Telecom Infrastructure consists of Passive Infrastructure Tower Shelter Foundation/Civil Work Outdoor/Indoor Electrical Power Supply/DG sets Optical Cables/Ducts Active Infrastructure Electronic Equipment Antennas

    6. Benefits of Sharing

    7. To be considered as core infrastructure developers Extremely capital intensive Attractive terms of investment needed to source equity/debt funding Cost effective solutions to attract Telecom Operators Challenges

    8. To extend Income Tax benefits under section 80 - I A Granting Infrastructure status under section 10-23(G) to developers of Telecom Infrastructure as a separate entry under sec. 80-I A (4) Our Proposal

    9. The Income Tax Act under sec. 80-I A(4) (ii) extends Income tax benefits to: The telecom operators who are developing their own telecom infrastructure. The developers of other infrastructure like roads, ports,highways, water supply projects etc. Government of India is committed to provide Rural telephony at affordable prices Justification

    10. Whilst prices of electronics as well as rate of customs duty is coming down, prices of passive infrastructure comprising of land, steel, cement etc. is going up. Income Tax rules allows each operator to claim depreciation benefits on their capex. Common network on shared basis thus would reduce overall depreciation benefits. Shared infrastructure service provided to the operators would generate additional service tax revenue Justification

    11. Benefits to the Revenue and economy Overall depreciation allowance by the department will be reduced Efficient use of capital in the economy Additional service tax revenues Benefits to the Consumers Lower cost of operations to reduce tariffs Penetration in the rural areas as sharing is the only viable alternative Benefits

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