A flat annual revenue levy to be effectuated on telecom networks

The Telecom Commission of India has acknowledged approval of procedures that will alter the current annual levy on the mobile networks from a variable rate to a flat rate for all telecom operators.

At the moment, the operators are known to pay between 6-10 percent of their annual revenues as a license fee. This arrangement is to be made consistent and the flat rate set at 8.5 percent. However, TRAI which is the industry regulator campaigned for a lower rate bordering around 6 percent.

The networks plying their respective trades across the major cities are being seen to benefit from this move while other national operators are not expected to see much difference because the rate cut in cities stands to be nullified by the increase in the rate to be paid for rural zones.

Additionally, Internet Service Providers and Long Distance landline networks stand to have to pay more, given that they pay only 6 percent for their revenues to the government.

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