Internet rates to remain stable under new telecom regime

Internet charges are not expected to go up with the implementation of new licensing regime which has exempted internet service revenue from 8 per cent fee, an industry body said today. 

"There was proposal to impose 8 per cent licence fee on adjusted gross revenue (turnover from telecom services) which could have led to around 24-25 per rise in Internet rates," Internet Service Provider Association of India (ISPAI) President Rajesh Chharia told PTI. 

"We are pleased to see that under the Unified Licences, government has exempted revenue from pure internet services from AGR," he said. 

Government exemption to pure internet services revenue from licence fee will contain internet rates, he added. 

Under the new licence regime, all permit holders will have to pay 8 per cent of their AGR as licence fee. 

The AGR will be derived after deducting revenue from pure internet services (internet access and content service), service and sales tax paid to the government and roaming revenue paid to other telecom operator from the total revenue earned by telecom service provider. 

IPSAI in a letter assured Telecom Minister Kapil Sibal of providing affordable services and achieving the target of 600 million broadband connections, specially in rural India, by 2020 or earlier..