Bharti Airtel has urged the central government to reconsider the 8 percent license fee (LF) on wireline broadband to accelerate fiber penetration in India. The chief regulatory officer of Bharti Airtel highlighted that only 13 percent of Indian households have fiber broadband, compared to over 90 percent in the US and China.
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Airtel Calls for Policy Reforms
Speaking at the ETTelecom 5G Congress 2025, which concluded on March 24, Airtel’s chief regulatory officer, Rahul Vatts, acknowledged government efforts such as easing right-of-way (RoW) rules but stressed the need to reduce or remove the license fee, as recommended by TRAI, to drive fiber expansion.
"The government has taken a first step. They have eased up the right of way rules, and a lot of support from the regulator on how we should move ahead with this," Vatts was quoted as saying in the report.
Government Efforts and TRAI’s Recommendations
"I think one large piece, which also the TRAI recommended, was on looking at the license fees on wireline broadband, which I think the government needs to consider if we really want to intensify the roll out of fibre going ahead," Vatts reportedly said.
Fixed-line broadband—covering voice, internet, and video, including IPTV—attracts a license fee of 8 percent on adjusted gross revenue (AGR). The Internet Service Providers (ISP) industry has also reportedly been pushing for a tax holiday and GST rationalisation to boost wired broadband adoption.
Airtel has recently launched IPTV services across India, bundled with its high-speed broadband offering, Airtel Wi-Fi.
Also Read: Airtel IPTV Launches in 2,000 Cities: Plans Start at Rs 699 with OTT Streaming Apps
Challenges Hindering Fiber Expansion
Despite a 2022 proposal to waive the license fee for 10 years, the government has yet to act. Fibre networks are becoming crucial for meeting rising data demands from fibre-to-the-home (FTTH), 5G, and artificial intelligence (AI) applications, but challenges like municipal regulations, fibre cuts, high costs, and a skilled workforce shortage persist.
As of December 2024, India has 39.27 million wireline subscribers, with Reliance Jio, Airtel, and BSNL leading the market.
