Govt may ring in uniform levy regime for telcos

The communication ministry will soon bring about an uniform levy regime for all telecom companies. Confronted with allegations that telecos were diverting revenues earned from mobile services to other businesses in an attempt to bring down the total dues owed to the government as licence fee and spectrum charges, the department of telecom (DoT) has set up a committee to suggest an uniform levy structure.

Under India���s current telecom policy, the levy structure differs from region to region and is based on the services offered. Telecom companies have to pay 6-10% of their annual revenues from mobile services to the government as licence fees and another 2-6% as spectrum charges based on the area of operations. These components vary according to the services offered. For instance, they do not cover revenues generated from internet services. Besides, the revenue share fee for carrying STD and ISD calls is a flat 6%.

Therefore, cross booking can help telcos to reduce the amount they pay the government. Last year, the government collected about Rs 12,000 crore from telecom companies in the form of different levies. According to DoT officials, the committee constituted on May 5 and headed by the ministry���s joint secretary JS Deepak, will submit its report in 30 days. As per the terms of reference, the committee will have to ensure that the introduction of a uniform levy structure does not lower the revenues collected by the government as levies.

The DoT appointed a special auditor to examine the books of Reliance Communications (RCOM) after Trai alleged the telco was ���passing off��� its income from non-voice services as part of the income generated from its Internet Service Provider (ISP) licence. Under an ISP licence, a telco does not have to share revenues with the government. RCOM has denied any wrongdoing.

The DoT has also appointed auditors to examine whether Bharti Airtel has been passing off mobile revenues as those from long-distance services (carrying STD and ISD calls) to save on the levies it has to pay the government. The DoT will also appoint external auditors to examine the books of Vodafone Essar, Idea Cellular and Tata Teleservices.