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Dot Proposes To Slash License Fee

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June 26, 2006 19:38 IST

Business Standard

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 up to 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 fixed line 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.

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.

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All operators will definitely reduce their charges, but our great (higher) Reliance and AA will definitely sleep over the changes for almost three months or more and then wake up and implement it.

So stop enjoying if the above comes true.

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come on from past fall in rates he is still sleeping (i think with his wife) god knows tthat when this KUMBHAKARAN will awake

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Reliance will wait till Airtel do something and then come up with some similar thing......

See airtel came with 999 Life time = Reliance Offered 995 Life time.......

Airtel 99 x 12 Life time = Reliance 90 x 12

Reliance Officials wait for the announcement from airtel and then start working on it :grin::grin::grin:

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