Trai moots uniform licence fee of 6% by 2014

Trai moots uniform licence fee of 6% by 2014
PTI
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First Published: Tue, May 11 2010. 06 59 PM IST
Updated: Tue, May 11 2010. 06 59 PM IST
New Delhi: Telecom regulator Trai on Tuesday proposed that the licence fee paid by operators should be reduced in the next four years to a uniform 6% of adjusted gross revenue from the current 6-10%.
Releasing its 2G spectrum allocation and pricing recommendations, the regulator said currently, telcos are charged a licence fee of 10% in the metros and A circles, 8% in B circles and 6% in C circles.
This licence fee should be brought down progressively from the existing rates to a uniform rate of 6% by the year 2013-14, said Trai chairman JS Sarma in a news conference.
Rajan Mathew, the DG of GSM operators’ association COAI, said this is a positive development, as it would bring down operators’ costs. This has been a long-standing demand of the operators, who said the total levies of the telecom sector in India were the highest in the world, at 30%.
Operators pay licence fees as a revenue share of their adjusted gross revenue.
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First Published: Tue, May 11 2010. 06 59 PM IST