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

By May 5th, 2014 AT 12:19 PM

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!

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PraveenRaghushuvikapilRAHUL RAI Recent comment authors
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Praveen
Praveen

Let corrupt politicians rule us. primitive narrowband is so expensive for a common person to afford , even if he manages to, he gets the speed of 10 kbps which is just useless in a modern-day smartphone. Don’t even think of broadband because it is just a dream for many. As mentioned here the so called 3G does not have more than 3 mbps in even metros and its worse in rural areas, even for that these telecom operators are charging 250 rs.and in how many areas we have 3G? along with all these the so called “regulators” and sarkari… Read more »

Raghu
Raghu

unacceptable

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