Indian Telcos Want Govt to Cut License Fee, but its Not Happening

The Indian telecom operators have been looking for a lot of help from the government. The sector had been under severe stress for cash because of the low average revenue per user (ARPU) figure impacting the overall revenues of the operators negatively. To address the cashflow stress that the telcos were facing, the Department of Telecommunications (DoT), in September 2021, announced plenty of relief measures. While the measures were good, they were nothing but just a starting point for the government to set affairs into order for the telcos. Indian government plans to offer more relief to the operators in the coming time. In fact, gradually, many things have been rectified, and a new central online RoW (Right of Way) portal was also announced.

• Make Telecom Talk My Trusted Source
• 
• 

Govt Hasn’t Listened to Telcos’ Request to Cut Down LF Percentage

One thing that the telcos have wanted for a long time hasn’t happened until now. The operators wanted the government to cut the license fee (LF) from 8% to 1%. For the unaware, the telecom license fee is currently 8% of the adjusted gross revenue (AGR). This 8% includes 3% LF and 5% contribution towards the USOF (universal service obligation fund). The aim of USOF is to enable users across the length and breadth of the country to get access to quality internet and connectivity services.

The telcos have time and again asked the government to abolish the USOF contribution from the existing LF and reduce the remaining 3% LF to 1%. It would help the telcos in boosting their investments and bring new technologies and services to customers fast. Despite numerous requests, the Indian government has not heard the telcos.