TDSAT rejects DoT move to levy licence fee on ISPs

In a big relief for internet service providers (ISPs), the telecom tribunal, TDSAT, today rejected the Department of Telecommunications' (DoT's) move to levy an annual licence fee.

The extra levy was to be paid with effect from July 1. Currently, ISPs don't pay any duty.

DoT had ordered ISPs to pay up to 7 per cent licence fee of their adjusted gross revenue from the stipulated period, and the figure was to be raised to 8 per cent from next year.

A draft of the amendment to the licence fee said: “A uniform licence fee of eight per cent of the adjusted gross revenue shall be adopted for all ISP and ISP-Internet Telephony (IT) licences, in two steps starting from July 1”.

The move could have meant an increase the internet usage charges for the end-users, as the ISPs would passed on the extra levy to the users.

Although Bharti Airtel had said they did not see any immediate hike in tariffs, other ISPs were of the view that the levy will be passed on to consumers with immediate effect.