The Department of Telecommunications (DoT) has reportedly refused to consider any reduction in the licence fee for telecom operators, amidst repeated demand from the industry. DoT stated that a lot has to been done for the sector and any further reduction in levies will lead to a loss to the exchequer.
The DoT reportedly also rejected the Telecom Regulatory Authority of India’s (TRAI) recommendations on the reduction of universal service obligation (USO) levy from five per cent to three per cent, as it would also lead to a revenue loss.
According to the section 11 (1) of the TRAI Act, DoT is supposed to reply to the TRAI on its recommendations for reducing fees and levies made in 2015. However, DoT has not yet responded to them.
Recently, the Cellular Operators Association of India (COAI) had requested the DoT to bring down the licence fee from one three per cent to one per cent and that the USO levy of five per cent to be deferred till the Rs 647.74 billion in the fund gets used up completely.