Uniform licence fee to hit NLD, ILD, ISPs: Ambit Fin

Telecom operators in metros and other big cities will gain most if the government imposes uniform licence fee of 8.5 per cent, while NLD, ILD players and ISPs will be worst hit, according to a report.     

The Department of Telecom (DoT) is mulling over implementing a flat licence fee for all circles at 8.5 per cent against the differential licence fee levied currently at — 10 per cent for metros and other big cities (A circles) and 6 per cent for the remaining places (B and C circles).     

This would automatically increase the licence fee for NLD, ILD and ISPs to 8.5 per cent from six per cent. Brokerage firm Ambit Finance said if implemented, the move would be negative for NLD, ILD and ISPs, C circle operators will face pressure on their margins while metro and A circle players will gain on margins.     

The report said if DoT goes ahead with its plan to include only revenues fromthe wireless services to determine the spectrum charges, it would result in a significant decline in spectrum charges for the operators who at present pay a little more than 4 per cent of Adjusted Gross Revenue as spectrum fees.