Telecom Lead India: The following is the highlight of
ISPAI’s main demands.
1. It is not mere 8 percent but
will have cascading impact, which will increase the cost from 25 percent
to over 60 percent depending upon ISP to ISP.
2. It is against the main
objective and spirit of National Telecom Policy 2012 which states affordable
and on demand Internet/Broadband connection to citizen of India.
3. Main thrust of Govt. is for rural broadband
penetration, rural people finds present rate non affordable what about after
imposition of new levies.
4. Penalty for ISP segment (revenue of Rs 7,500 crores as
per TRAI) while reward to other operators by leaving IP 1 sector (revenue of Rs
25,000 crore as per TRAI) without imposing any levies, while TRAI advised
levies to both sector for level playing field and in NTP recommendation.
5. ISP penalized for Government’s failure to audit
telco’s arising out of the differential revenue share payable by them
against their multiple licenses, leading to the alleged underreporting of
revenue.
6. Imposed tax without even analyzing the financial
position of ISP segment.
7. Policy will remove competition by killing 90 percent
ISP serving to niche smaller town and rural area.
Internet Service Providers (ISP) have filed a petition
with the telecom tribunal opposing a move by the Department of Telecom to
impose a higher license fee.
It will be disaster for the penetration of broadband in
the country which is already in the doldrums. India was not able
to achieve target of 40 million by 2010. Industry has doubts about
achieving 175 million by 2017 and 600 Million by 2020,” said Rajesh Chharia, president,
Internet Service Providers Association of India.
The DoT has decided to levy a four percent licence fee on
ISPs from July 1. The ISPs at present do not pay any licence fees. This will
further be increased to seven percent from the current six percent. From April
1, all operators have to pay a uniform eight percent of the annual revenue.
According to the Internet players, the move will increase
tariffs for Internet users as the increase in costs will be passed on to the
subscribers. The plea has been filed by the Internet Service Providers
Association of India along with 10 Internet companies.
In the petition, the Internet companies have argued that
a contract cannot be unilaterally amended by one of the parties without the
consent of the other.
License can be modified only in public interest or for proper
conduct of service. Neither of the two conditions can be said to justify the
impugned Circular. The impugned amendment (DoT’s decision) would have the
effect of putting unjustified financial burden on the Petitioner (ISPAI)
without any justifiable reason and is totally unreasonable, arbitrary and
disproportionate,” the petition said.
