TRAI’s Proposal to Hike License Fee from ISP – not healthy for Indian Telecom !

Follow Us

India's broadband dream could have been stalled if TRAI's suggestion of 8% of annual revenue as license fee for internet service providers becomes a reality. The state of internet, more specifically the wire line segment is the worst in India; though wireless broadband situation is better, thanks to 3G, EVDO and LTE.

TRAI Logo




TRAI proposed a uniform license fee of 8% of adjusted gross revenue to be applicable on all internet service providers including those have internet telephony licenses. If TRAI's recommendations are agreed, the internet tariff may go up by around 30%.

This move will impact more negativity to the country's already-dull telecommunications industry. The voice-mania is now over. The excitement time is over - Etisalat, Batelco, NTT Docomo exited; Telenor and MTS shrinked their service area, while Vodafone took 100% of Indian venture.

The next big thing in telecom will be the data boom i.e. rise of broadband. If TRAI keep proposing such ideas, the next wave of telecom - data growth will never happen. Already India's telecom sector has lost its excitements to global investors and no one is looking for an Indian telecom/internet venture at present. Incumbent players, like Airtel, Vodafone, Idea may welcome this recommendation as it could help them to continue tariff hike from time to time.

Reliance Jio, which needs no introduction right now, is coming and the company owns both ISP license and ISP-IT license. If the new recommendations are accepted Jio could not be able to offer disruptive tariffs for internet access.

It seems government agencies - TRAI, DoT, TDSAT and all are acting to create monopoly in the market cutting down the competition from the market.

What do you think guys regarding TRAI's recommendation? Drop comments!

Recent Comments

Faraz :

Does Bharti Hexacom provide Airtel 5G services in N.E and Rajasthan Or Both are offering 5G seperately ? Who bought…

Bharti Hexacom IPO Set for April 3, TCIL to Sell…

Faraz :

Nice.. & BSNL 60 Mbps is even perfect plan for many if there are more than 5 devices connected. Many…

BSNL 60 Mbps Plan is Likely One of the Best…

Faraz :

Budget phones have degraded more than any other budget phones since pandemic. They are still selling some craps like Helio…

POCO C61 to Launch on March 26, 2024

shivraj roy :

i feel Vi has improved than what it was in 2022 i usually get around 8-10mbps in very heavily dense…

5G Users Consuming 3.6 Times More Data than 4G Users…

biswadeepmondal :

JioAir Fiber is working very well in KPA & HLR. Sadly they don't have any data only plan.

REP: Airtel Expands Network Footprint in Bankura District of West…

Load More
Subscribe
Notify of
16 Comments
newest
oldest most voted
Inline Feedbacks
View all comments