Dot, Vsnl Agree On Revenue Sharing Fomula
Telecommunications minister Beni Prasad Verma yesterday announced a new five-year revenue sharing agreement between the department of telecommunications (DoT) and Videsh Sanchar Nigam Ltd (VSNL), Indias sole licence provider of global telecom services, according to a press release. The new agreement will come into effect from April 1, 1997.
The new revenue sharing agreement will enhance the competitiveness of both DoT and VSNL and assist them to meet the objectives of the national telecom policy, Verma said.
The highlights of the pact are:
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Under the new formula VSNL will receive a net revenue of Rs 10 for every paid minute of incoming and outgoing international calls for fiscal years ending March 31, 1998 and 1999.
In the financial years between April 1, 1999 and March 31, 2002, VSNLs net revenue per paid minute will be modified depending on exchange rate fluctuations and reviews in international telecom accounting rates. The net revenue will be calculated based on a pre-determined formula which has been agreed between the department of telecommunications and VSNL.
The agreement is subject to review if in any financial year the rupee-dollar exchange rate fluctuates by more than 10 per cent in either direction or if VSNL earns less than Rs 9 per minute or more than Rs 11 per minute.
The licence fee payable by VSNL to department of telecommunications will be Rs 2.5 lakh per commissioned global circuit.
The surcharge on the annual landline charges has been discontinued with effect from April 1, 1997.