DoT has reduced the licence fee for telecom service providers that have completed over 95 per cent network rollout in a service area, except the metros.

DoT has reduced the licence fee for telecom service providers that have completed over 95 per cent network rollout in a service area, except the metros. The applicable universal service obligation (USO) levy for these operators will be 3 per cent instead of 5 per cent, which implies that the licence fee for Category A, B and C circles has been reduced from 10 per cent, 8 per cent and 6 per cent to 8 per cent, 6 per cent and 4 per cent respectively. Meanwhile, the Cellular Operators Association of India (COAI) is opposing this move and is set to approach DoT. COAI believes that since the unutilised sum in the USO Fund has already crossed Rs 200 billion, any reduction in this levy should be applicable to all players.