Wednesday, July 21, 2010

'Cut mobile ownership tax to increase penetration'

Published: 2010/07/22




The government should consider reducing the tax on total cost of mobile ownership so as to help increase penetration, according to the GSM Association (GSMA).



Its Asia Pacific senior director Jaikishan Rajaraman said a tax reduction of 1 per cent from the current 6.1 per cent could increase mobile penetration by between 0.9 and 1.8 per cent, delivering between 260,000 and 530,000 new subscribers.



He said in a statement yesterday that such a measure could also create an additional contribution of between US$105 million (RM337.05 million) and US$1.44 billion (RM4.64 billion) to the gross domestic production (GDP) over a five-year period.



The GSMA represents the interests of the worldwide mobile communications industry, with its membership comprising nearly 800 of the world's mobile operators.









Jaikishan said according to the latest Telecom Advisory Services report, Malaysia's taxation on mobile broadband has been one of the most flexible in the world, providing a positive impact on the mobile broadband target of 50 per cent by end of this year.



"But there is a major need for the tax adjustment so that the potential of the industry can be unlocked, and more needs to be done to drive widespread availability across the country," he said.



Jaikishan said the government should consider developing a consistent plan for spectrum allocation, including the licensing of a 2.6 gigahertz spectrum for future long-term evolution deployment.



"With further support and commitment from the government facilitating these key spectrum levers, GSM mobile operators across Malaysia have the opportunity to become the key innovators driving broadband uptake across the country," he said. - Bernama



http://www.btimes.com.my/Current_News/BTIMES/articles/gasma/Article/

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