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Unifrom license Fee

Unifrom license Fee. The telecom operator paid fix license fee at the beginning. It was around 500 per month per customer. THE new telecom policy 1999, allowed to pay license fess as fixed percentage of revenue.

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Unifrom license Fee

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  1. Unifrom license Fee • The telecom operator paid fix license fee at the beginning. • It was around 500 per month per customer. • THE new telecom policy 1999, allowed to pay license fess as fixed percentage of revenue. • For segments like nld and int long distance same revenue sharing agreement was In place • Initially it was 10,12 and 15%

  2. Revenue was AGR ( removing interconnection charges and roaming charges , handset sale revenue) • In 2004 changed in 10% metro and circle a • 8 % cirlce b and 6% circle c. • Govt received Rs 2500 per quarter as license fee. • License fee with high revenue will anyway be greater. Hence there is no need for differentila license fee.

  3. Moreover tarrif structure was same across all circles. • Implying the customer form circle b and c subsidised metro and a. • License fee per customer Rs 16 per month. • NLD was only 6% . So there was arbitrage. • Proposed license fee at 8.5%. • License fee under UL will increase for b and c c from 42 cr to 62cr. • Average AGR is 8.9% now

  4. Hence govt will loose out 97cr per quarter. • Bsnl set to loose 35cr as it does not operate in metro circle. • Vodafone set to gain maximum by Rs 21cc • The revenue of sector is Rs1 tn. • Spectrum fee of 875 cr+license fee of rs 2500cr • License fee at 7.5% loose 850cr per quaer.

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