| India: Fee changes for rural telecoms |
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| Friday, 25 July 2008 | |
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The Telecom Commission, the policy-making body under the Department of Telecommunications (DoT), decided to waive the license fee on rural landlines and to reduce the universal service obligation (USO) fund levy. The Commission decided to waive the license fee on rural landlines to promote telephone use in rural areas. The decision is also intended to improve e-governance through the extended provision of broadband service in villages. The waiver amounts to US$ 46.7 million annually. The other major decision was to reduce the USO fund levy from the current 5.0% to 3.0% of adjusted ground revenue (AGR) for those telecommunications operators who already cover more than 95% of rural areas. The change requires the operators to dramatically increase rural coverage to take advantage of the levy reduction. Mobile population coverage in India is estimated at between 65 and 70 percent. Source: The Hindu - WDR/Intelecon Regulatory News. |