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DoT Brings Issue Of Cutting Licence Fee For Telecom Operators Back On Table — What Could Change

A two-percentage point cut in USO levy will be put before DCC soon, bringing licence fee down to 6% from 8%.

The department of Telecommunications (DoT) has brought the issue of cutting licence fee for the telecom operators back on the table, despite the committee of secretaries not approving it. Sources told FE that DoT would shortly move a proposal before the digital communications commission (DCC, and formerly, Telecom Commission) to reduce the universal service obligation fund (USOF) levy by 2 percentage points to 3%. If this happens, the licence fee which operators currently pay at 8% of their adjusted gross revenue (AGR), would come down to 6%. If the proposal is passed, it would provide a relief of around Rs 3,000 crore annually to the operators.

However, DoT has not taken any decision so far on any reduction in the rate of spectrum usage charge. There has also been no decision so far on providing any relief on the Rs 1.47 lakh crore of adjusted gross revenue dues resulting from the October 24 order of the Supreme Court. – Financial Express

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