Tuesday, August 02, 2011

India - DoT is to set a common tax rate of 8.5% for mobile operators, replacing variable rates of 6-10%

[cellular news] India's Telecom Commission has approved plans to change the current annual levy on the mobile networks from a variable rate to a flat rate for all telecom operators.

Currently, the operators pay between 6-10 percent of their annual revenues as a license fee. This is to be standardised at a flat rate of 8.5 percent. The industry regulator, the TRAI had lobbied for the rate to be lowered across the board to 6 percent.

The move will benefit primarily the networks covering the major cities as they currently pay the higher rate, but the larger national operators are unlikely to see much difference as the rate cut for cities will be offset by rises in the rate paid for rural areas.

In addition, Internet Service Providers and Long Distance landline networks will have to pay more as they currently pay only 6 percent of their revenues to the government.

India to Level the Annual Revenue Levy on Telecom Networks

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