India balks at further telecom fee cuts

January 2, 2006

The Indian government has rejected a proposal to cut telecom licensing and spectrum fees rather than face continuing revenue losses.

The Telecom Regulatory Authority had proposed the reduction; however, the Business Standard reported Sunday night that the Finance Ministry vetoed the idea, telling the newspaper that "the government cannot go on reducing the license fee forever."

Reducing fees paid by telecom operators has played an important role in spurring infrastructure expansion. Another cut, however, would cut into revenues the exchequer was planning on.

Industry officials said India continued to have regulatory costs well above those paid in China and other countries in the region.

Copyright 2006 by United Press International

Explore further: Briefs: Telecom N.Z. chops rural broadband prices

Related Stories

India's telecom sees more liberalization

November 11, 2005

In a fresh dose of liberalization, India yesterday announced a slew of relaxations in its telecom rules, which not only allows more players -- both local and foreign -- to enter the country's burgeoning telecom sector, but ...

Europe's telecoms remain on toes

November 10, 2005

The rapid change in Europe's telecommunications industry stepped up further as Swisscom acknowledged Wednesday it was in talks with Ireland's Eircom for a potential buyout.

India calls for new telecom players

November 30, 2005

In yet another step to woo foreign investors and new players to its burgeoning telecom sector, India has decided to open up the latest mobile rage of 3G services only to new telecom players that have not started operations ...

Recommended for you

Amazon deforestation leaps 16 percent in 2015

November 28, 2015

Illegal logging and clearing of Brazil's Amazon rainforest increased 16 percent in the last year, the government said, in a setback to the aim of stopping destruction of the world's greatest forest by 2030.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.