Trai, DoT Differ on Uniform Licence Fee

by CXOtoday Staff    Sep 15, 2009

The Telecom Regulatory Authority of India (Trai) has urged the telecom ministry to consult it before deciding the licence fee for service providers.

This follows the Department of Telecommunication’s decision to adopt a uniform licence fee of about 8.5 % of the revenues, replacing the existing variable licence fee.

DoT’s decision to introduce uniform fee is intended to prevent service providers from manipulating revenues to benefit from reduced levies as suspected last year. However, Trai is of the view that uniform licence fee would mean reduced revenues for government as well as increased levy for end-consumers as the financially-impacted operators may then pass on the burden to them.

Service providers in category C circles in particular will be affected by introduction of uniform licence fee of 8.5 % as they currently pay a much lesser percentage than other circles.