Friday, March 7, 2014

Telecom panel agrees licence fee for all operators

Telecom Commission has provided its nod to imposing a uniform licence fee of 8.5 per cent approximately all telecom providers. Operators currently pay between 6 per cent plus 10 per cent of their yearly profits because licence fee. Though the Telecom Regulatory Authority of India had suggested lowering the licence fee to a uniform 6 per cent, a panel set up by the DoT pegged this at 8.5 per cent inside purchase to safeguard Government money.

The Telecom Commission inside its meeting approximately July 22 overruled the TRAI suggestions plus ratified the views of the DoT committee inside this respect. This move can benefit providers inside Metro regions that are currently paying 10 per cent of the yearly profits. But, Internet Service Providers plus Long Distance Telephone providers might need to pay out more because they currently pay just 6 per cent. For pan-India players, this move won’t have any main impact because they end up paying regarding 8.5 per cent of the total profits approximately a typical. The Commission furthermore decided to take legal opinion found on the problem of changing roll-out obligation for telecom players. The TRAI had recommended roll out obligation based approximately population whereby providers will be necessary to pay for all regions with over 10,000 persons in 2 years plus 2,000-5,000 persons inside 4 years.

Under the existing rules, providers are needed to pay for geographical location irrespective of the population. The DoT panel had refused TRAI’s views approximately grounds that many of the providers have absolutely completed the present responsibilities plus, consequently, it will be legally untenable to alter the norms.

The Commission has agreed with many different recommendations created by the DoT internal panel. As an example, the TRAI had desired powers to scrutinise spectrum use by Government agencies including the defence forces.

The Commission has agreed with all the DoT panel views which TRAI could just consider spectrum utilize by telecom providers. The Commission has furthermore ratified DoT panel’s views which there was clearly no have to set up a modern fund to satisfy expenses associated to spectrum re-farming. It has additionally accepted moving to a fresh licence regime whereby all licences is unified plus spectrum is delinked within the licence.

The Commission has decided which the TRAI must provide detailed policies approximately moving to the hot regime including implementing the first-come-first-served plan for providing out unified licences.

 

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