Press Esc to close
Friday 24 October 2014
News updated at 1:56 PM IST
Weather
Max: 0°C
Min : 0°C
In Bangalore
Sunny day

Internet rates may go up as DoT decides to levy fee on it

New Delhi, Aug 30, 2013 (PTI):

Using the Internet may become up to 30 per cent costlier as the Department of Telecom today issued corrigendum to the new telecom licences agreement bringing revenue from these services under its cess net.

As per the initial version of the Unified Licence on August 2, DoT had exempted Internet services revenue from adjusted gross revenue (AGR) -- part of telecom company's earnings on which annual licence fee is levied.

It had said that AGR will be calculated after deducting revenue from pure Internet (access and content) services, sales tax paid to the government and roaming revenue paid to other operators from the total revenue earned by telecom service providers.


However, in the corrigendum on calculation of AGR DoT has said: "Revenue from Pure Internet Service under heading B-Deduct stands deleted."

Under the new licences, telecom operators (including Internet Services Providers will have to pay uniform licence fee of 8 per cent annually on AGR.

The Internet Service Providers Association of India has warned the step would lead to hike in consumer rates by up to 30 per cent.

ISPAI president Rajesh Chharia said the move is a "major setback in broadband penetration specially in rural India, as there will be cascading effect and license fee on multi point will increase broadband price by 30 per cent".

He added that ISPs are in bad condition already and this will worsen their situation.
"The whole Internet broadband business will become pure monopolistic, which is not good at all for the country. Only 1 or 2 big player will survive and they will take the benefit of monopoly market," Chharia said.

All new telecom services providers are required to take Unified Licence, while existing companies will have to migrate to the new licence on expiry of their permits for continuing their business.

According to recent report by analytics firm comScore, India has by passed Japan to become the world's third largest Internet user after China and the US with 74 million Internet users.
As per telecom regulator Trai, there were 15.13 million subscribers at the end of May.

Go to Top

Photo Gallery
Hindu priest performs evening prayers called 'Aarti' on the banks of the river Yamuna...

Hindu priest performs evening prayers called 'Aarti' on the banks of the river Yamuna...

Dakshineswar Temple decorated with lights for the Kali Puja and Diwali at North 24 Pargana...

Dakshineswar Temple decorated with lights for the Kali Puja and Diwali at North 24 Pargana...

Firecrackers light up the sky as people celebrate Diwali festival in Mumbai...

Firecrackers light up the sky as people celebrate Diwali festival in Mumbai...

School students lighting earhen lamps at Tulsi Ghat in Varanasi...

School students lighting earhen lamps at Tulsi Ghat in Varanasi...

A view of decorated Madan Mohan Malviya Stadium with oil lamps during Deepwali festival...

A view of decorated Madan Mohan Malviya Stadium with oil lamps during Deepwali festival...

Illuminated Golden Temple on the eve of Diwali in Amritsar...

Illuminated Golden Temple on the eve of Diwali in Amritsar...

Children with special needs light firecrackers as they celebrate Diwali...

Children with special needs light firecrackers as they celebrate Diwali...

Border Security Force (BSF) soldiers enjoy Diwali celebrations on the eve of Diwali...

Border Security Force (BSF) soldiers enjoy Diwali celebrations on the eve of Diwali...

Hindu priests light oil lamps in a formation of the 'Swastika', a Hindu symbol of peace...

Hindu priests light oil lamps in a formation of the 'Swastika', a Hindu symbol of peace...

A Border Security Force (BSF) soldier lights sparklers on the eve of Diwali...

A Border Security Force (BSF) soldier lights sparklers on the eve of Diwali...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523