DoT to cut licence fee to 6% for fixed, mobile users
The DoT is preparing a roadmap to cut the current circle-based licensing systems to a uniform 6 per cent, which currently stands at 10, 8 and 6 per cent for A, B and C circles respectively.
By PTI |
NEW DELHI: Mobile and fixed phone subscribers can expect a reduction in tariffs with the Department of Telecom gearing up to effect the annual licence fee cut to 6 per cent from the current circle-based fee of upto 10 per cent after the monsoon session of Parliament ends.
The Department is preparing a roadmap to cut the current circle-based licensing systems to a uniform 6 per cent, which currently stands at 10, 8 and 6 per cent for A, B and C circles respectively. The cut will be effective after the monsoon session of Parliament, senior DoT officials said.
The monsoon session of Parliament is scheduled to start in July and end in August
But officials did not reveal how much revenue-loss would be accruing to the government by this uniform fee, which would result in a reduction in licence fee of up to 4 per cent overall in these two segments. They said DoT expected the upsurge in volume traffic to generate additional revenue.
As and when applicable, the new fee will be applicable for both mobile and fixedline services and will include a 5 per cent universal service obligation (USO) levy. Currently, mobile and fixed line operators have to pay a fee of 10 per cent for metros and category A circles, 8 per cent for category B circles and 6 per cent for category C circles.
ADVERTISEMENT
Earlier, DoT reduced the entry fee for STD and ISD operators to Rs 2.5 crore from Rs 100 crore for a NLD licence and Rs 25 crore for an ILD licence. The licence fee was also brought down from 15 per cent to 6 per cent of the annual revenues.Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
