The telecom regulator TRAI has suggested a review and rationalization of both the levies in the New National Telecom Policy (NTP). Due to layering of service providers in the value chain, infrastructure, networks, services, and applications, the regulator feels it is essential to review the positions to avoid cascading of levies.
The new Telecom Policy is currently being prepared by the department of telecommunications (DoT) and is slated to be announced in March.
TRAI emphasized that the present method of calculating licence fee (LF) and spectrum usage charge (SUC) is around 20 years old, hence a review is needed.
As the DoT had asked TRAI to give its recommendations on the NTP-2018, TRAI said: “A number of issues related to GR and AGR are being litigated at various forum and it is essential that these be resolved at the earliest. A review of GR and AGR would assist in enhancing clarity and removing ambiguities.”
TRAI added that technology and market have changed from being voice-centric to data-centric with telecom operators now offering bundled services, the regulator recommended that the National Telecom Policy (NTP) 2018 should review gross revenue (GR) and adjusted gross revenue (AGR).
TRAI said in its recommendations: “In addition to reviewing LF and SUC structure, there is a need to review rates of such levies keeping in view the fact that access spectrum is now being assigned through auction process and telecommunication networks have become underlying infrastructure for growth of digital economy.”
The TRAI’s recommendations have been received well by the telecom sector. The Cellular Operators Association of India (COAI) supported TRAI’s suggestion to the government to simplify licensing and regulatory regime and rationalisation of high taxes and levies by 2019 to pump a $100 billion worth of investments in the financially-burden telecom sector by 2022.
COAI director general Rajan S Mathews said: “We strongly support the TRAI’s recommendations on simplifying the licensing and regulatory frameworks and rationalizing taxes, levies and related compliance by 2019 and we expect that the same would be done at the earliest.”
Source: http://cablequest.org/index.php/news/regulations-news/item/12094-trai-recommends-dot-to-review-rationalize-both-the-levies-in-new-telecom-policy
TRAI emphasized that the present method of calculating licence fee (LF) and spectrum usage charge (SUC) is around 20 years old, hence a review is needed.
As the DoT had asked TRAI to give its recommendations on the NTP-2018, TRAI said: “A number of issues related to GR and AGR are being litigated at various forum and it is essential that these be resolved at the earliest. A review of GR and AGR would assist in enhancing clarity and removing ambiguities.”
TRAI added that technology and market have changed from being voice-centric to data-centric with telecom operators now offering bundled services, the regulator recommended that the National Telecom Policy (NTP) 2018 should review gross revenue (GR) and adjusted gross revenue (AGR).
TRAI said in its recommendations: “In addition to reviewing LF and SUC structure, there is a need to review rates of such levies keeping in view the fact that access spectrum is now being assigned through auction process and telecommunication networks have become underlying infrastructure for growth of digital economy.”
The TRAI’s recommendations have been received well by the telecom sector. The Cellular Operators Association of India (COAI) supported TRAI’s suggestion to the government to simplify licensing and regulatory regime and rationalisation of high taxes and levies by 2019 to pump a $100 billion worth of investments in the financially-burden telecom sector by 2022.
COAI director general Rajan S Mathews said: “We strongly support the TRAI’s recommendations on simplifying the licensing and regulatory frameworks and rationalizing taxes, levies and related compliance by 2019 and we expect that the same would be done at the earliest.”
Source: http://cablequest.org/index.php/news/regulations-news/item/12094-trai-recommends-dot-to-review-rationalize-both-the-levies-in-new-telecom-policy
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