TRAI considering levy on infrastructure companies

16 Oct 2008

According to Telecom Tiger, the Telecoms Regulatory Authority of India (TRAI) is considering imposing licence fees on telecoms infrastructure companies, as operators continue to divest tower infrastructure into separate business entities. Operators currently pay between 6%-10% of their annual revenues as a part of their licence fee; infrastructure companies however are not obliged to make such a contribution, despite earning revenue from leasing capacity to other operators. Telcos have already expressed their disagreement with the proposals, claiming such a move would effectively lead to a double taxation; operators contend that revenue earned from infrastructure businesses is already accounted for in the fees paid by the operator that leases out the capacity.