Update: Download a copy of the notification here. July 9th 2012: The Internet Service Providers Association of India (ISPAI) has approached the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), challenging the Indian Government's decision to levy a 4% license fee on ISPs' gross annual revenues, starting 1st July 2012. The government had earlier announced that it plans to increase the fee to 8% by April 2013, in two yearly steps. At present, no license fee is charged from ISPs. In a media statement, the ISPAI has pointed out the following issues: - Cascading Effect: The fee will have a cascading impact and will lead to a 25% to 60% increase in cost, depending on the ISP. - Telco Revenue Share Issues: The government was penalizing the ISPs due to its own failure to audit telecom operators' differential revenue share payable by them against their multiple licenses, leading to the alleged underreporting of revenue. - Against NTP 2012: It said that the move was against the main objective and spirit of National Telecom Policy 2012 which mentions “affordable and on demand Internet/Broadband connection to citizens of India” and that it will remove competition by killing 90% of ISPs serving to niche smaller town and rural areas, making it a service for the privileged. - Make Tariff Unafforable: The association stressed that the main thrust of the government was for Rural Broadband penetration, and Rural masses find the present tariffs non affordable. So the new levies would further harm the prospect of rural internet…
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