The Telecom Regulatory Authority of India (TRAI) has recommended a uniform licence fee as eight percent on of adjusted gross revenue (AGR) for internet service providers (ISPs).
According to TRAI, revenue for the purpose of licence fee for ISP licences shall include all types of revenue from internet services. Further, deductions would be available only for pass through charges and taxes/levies as in the case of access services, without any set-off for expenses.
TRAI has also suggested that for the existing ISPs who won broadband wireless access spectrum in 2010, the value of presumptive AGR shall be equal to five per cent of sum of the total bid amount by the licensee for the respective service area, as applicable to the licensees who obtained spectrum in the auctions conducted in November 2012 and March 2013.
The regulator is of the view that since the Department of Telecommunications has implemented the policy of presumptive AGR on spectrum assigned at market prices, it is necessary that the policy is applicable uniformly to all licence holders in a non- discriminatory manner to ensure level playing field.
