Letter to BS: Slashing AGR licence fee for broadband is a welcome move

The proposal of the government to reduce the adjusted gross revenue on wireline broadband from 2.5 per cent to 1 per cent is a pleasant surprise for telcos that are sa­ddled with huge dues. This move is aimed at giving a boost to wireline telephone and broadband. The wireline telephone, which lost its way amid the exponential growth of mobile phones, is currently languishing at just 2 per cent of overall customer base. This needs to change.

Work from home getting wi­der acceptance amid Covid-19 could be the right catalyst for in­creasing the wireline broadband penetration. The telcos must sei­ze the opportunity. It’s a win-win situation for everyone — the telcos, government and co­nsumers. For the telcos, it would in­crease their top line by in­cre­ased data consumption; government would reap dividends  hi­gher goods and services tax collection and consumer could enjoy the boundless virtual world.

Sanjeev Kumar Singh  Jabalpur

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