TRAI’s latest proposals for ISPs upset industry

TRAI’s latest proposals upset industry

Indian Telecom Regulatory body TRAI is disappointed with the kind of services internet service providers are providing to customers in the market.

As a result, they have come up with new proposals which are not exactly making the industry any happier. TRAI has proposed reduction in FDI cap and imposition of license fee on the ISPs operating in the Indian market.

TRAI has proposed that the FDI limit should be lowered from the existing 100 per cent to 74 per cent, on par with telecom sector.

In addition they are now recommending that the ISPs should pay an annual license fee of six per cent of gross revenue.

The aim is to get more serious players to enter the market to provide services. However, the existing players in the market are not satisfied. They believe that these recommendations would force them to increase the charges levied on the end user.

Internet Service Providers Association of India President Rajesh Chharia said in a statement: “The uniform license fee of six per cent of Adjusted Gross Revenues (AGR) will affect the end consumers as the cost of broadband services will increase by 6-24 per cent.”

TRAI had this to say: “The Authority hopes the recommendations, if accepted by DoT will contribute to Internet penetration, curb grey market and effectively provide level playing field and above all serve consumers interest.”