Licence fee cut for STD-ISD services

Posted on | November 11, 2005 |

Telecom minister Dayanidhi Maran announced the slashing of entry fees for both national and international long distance operators to Rs 2.5 crore from Rs 100 crore and Rs 25 crore, respectively. The annual licence fee for both services had been reduced to 6% of annual gross revenue from 15%.

The government has also decided to do away with the roll-out obligations, which means, that the NLD licence holders will no longer be required to have a point of presence (PoP) in each long distance charging area (LDCA), as mandated now. Having a PoP in each LDCA ensured that the NLD licence holders set up infrastructure in relatively less lucrative rural areas too.

In case of ILD services too, the rollout obligations have been waived except that all the ILD licence holders will need to have at least one switch in India. Sources in the department of telecommunication said this was for

Category: Government

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