Top News

ISPs protest Government’s 4% fee on annual revenues

The Internet Services Providers Association
of India (Ispai), an industry body representing internet service providers in
India has moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to
protest against the government’s decision to levy a fee of 4 per cent of their
annual revenues from July 1, 2012.

The Internet Services Providers Association
of India (Ispai), an industry body representing internet service providers in
India has moved the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to
protest against the government’s decision to levy a fee of 4 per cent of their
annual revenues from July 1, 2012.

The Department of Telecommunications (DoT) had
decided to impose a uniform licence fee of 8 per cent of gross revenue on both
categories from in a two-step process over two years. ISP’s would pay 4 per
cent while ISP-IT companies will pay 7 per cent from July 1 2012. Both will
have to pay 8 per cent of the adjusted gross revenue as licence fee from April
1, 2013. The ISPs at present do not pay any licence fees. Internet service
providers do not pay any fee to the government at present. Internet service
providers offering internet telephony pay about 6 per cent of their annual
revenues as licence fee to the government.

“Even lower license fee has not been able
to achieve desired result in growth of Internet subscriber base is totally
fallacious. For growth in subscriber base there is first required the requisite
number of computers and also literacy levels, which unfortunately are lacking
in the country. However, inspite of these constraints the petitioners are doing
their best to increase their reach. In such scenario, to put additional burden
of license fee on them would be totally arbitrary and unsustainable,” the
petition said.

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close