According to the Planning Commission, lowering the licence fee for operators purchasing domestically manufactured equipment can boost indigenous manufacturing of telecom gear, say news reports.
In its 12th Five Year Plan document, the Planning Commission has emphasised on increasing the use of domestically made products in the country’s telecom network.
From 2013-14 onwards, the government will charge all operators eight per cent of gross revenue as licence fee. Currently, the Department of Telecommunications charges operators a licence fee of 6 to10 per cent, depending upon the service they are offering and the circles in which they are present.
According to the Telecom Regulatory Authority of India, in 2009-10, the telecom industry used only 12-13 per cent of local products made with the aid of foreign vendors. Meanwhile, Indian-made products accounted for just three per cent in the telecom market.
