TDSAT asks govt to file reply over Internet service providers' plea on license fee levy

NEW DELHI: Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has sought a reply from the government over the appeal filed by Internet service providers opposing imposition of licence fee of 4 per cent of their adjusted gross revenue (AGR).

A TDSAT bench headed by Justice SB Sinha has issued notice to the Ministry of Communications & IT asking it to file reply within two weeks.

The service providers; lobby group Internet Service Providers' Association (ISPAI) also secured extended time period from the tribunal to file rejoinder and the matter was listed to August 8 for next hearing.
In its petition, ISPAI has submitted that the government cannot “unilaterally amend the Licence Fee during the currency of the Licence Agreement.”
In an order issued on June 26, 2012, the government imposed an annual licence fee of 4 per cent of AGR on Internet providers, who were not providing Internet-based telephone services. Earlier, the service providers were only providing a notional licence fee of Re 1 only.