12 Aug 2012

Increasing Cost of Internet Access

The cost of accessing Internet is not fixed by the Government. The tariff for internet services are governed by the Telecom Tariff Order(s) issued by Telecom Regulatory Authority of India from time to time.
 
However, the Government has decided to levy a uniform licence fee as 8% of “Adjusted Gross Revenue(AGR)” on all Internet Service Providers in phased manner, in two steps starting from 01.07.2012. 
This decision for imposing Uniform Licence Fee for various Telecom Service Providers was taken in the interest of ending arbitrage in the licence fee, ensuring simplicity & transparency, expanding licence fee base and ensuring a level playing field between different services, with due consideration of the revenue receipts of the Government and the growth of Telecom services in the country. 
This was stated by Shri Milind Deora, the minister of State in the Ministry of Communication and Information Technology in response to a question in Lok Sabha today.

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