DoT relents to seek TRAI views on licence fee

Agencies

Posted: Wednesday, Nov 04, 2009 at 1828 hrs IST
Updated: Wednesday, Nov 04, 2009 at 1828 hrs IST


Font Size

Print

Feedback

Email

Discuss

New Delhi: After initial resistance, the Department of Telecom has relented and would now seek telecom regulator Trai’s recommendations on a proposal to bring in a uniform licence fee.

DoT is considering a uniform licence fee of 8.5 per cent of Annual Gross Revenue (AGR) be it for Unified Access, National Long Distance call service, International Long Distance or others.

“We may seek the recommendations of Trai on the methodology to remove arbitrage in the prevailing licence fee structures across various service providers with due consideration of the revenue receipts of the government exchequer and the growth of telecom services in India,” official sources in the know said.

The telecom industry has been demanding a uniform rate of licence fee to remove anomalies across various segments as it has been noted that operators were transferring their revenues in those services that attracted lower licence fee.

Trai had written a letter in Septemebr to DoT stating that it is expected that the regulator would be consulted before the DoT takes a decision in the matter.

Trai had said that the proposal would have wide implications for the entire telecom sector as well as on the revenues of the exchequer and thus the regulator should be consulted and consultation process should be carried out before taking a final decision.

More from Telecom

Discuss this story on expressindia forums

Post Comments

Comments: (Limit 3,000 characters)
Name
Message
Email ID
Subject
TERMS OF USE:
The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
I agree to the terms of use.

Comments
Flowers & Cakes DeliveryExpress Classifieds
Post and view free classifieds ad
Express Astrology
Know what's in the stars for you