Kumari Palany & Co

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Horrible news for internet users

Posted on: 31/Aug/2013 3:27:00 PM
It is time for internet users to get worried because they have to shell out another 30% more than earlier. The Department of Telecom has issued a corrigendum to the new telecom licenses agreement bringing revenue from these services under its cess net.

According to the principles that have been put forward in the initial plan of things, DoT had exempted internet services revenue from adjusted gross revenue (AGR) -- part of telecom company`s earnings on which annual licence fee is levied.

It has now said that the AGR will be calculated after deducting revenue from pure Internet (access and content) services, sales tax paid to the government and roaming revenue paid to other operators from the total revenue earned by telecom service providers.

However, in the corrigendum on calculation of AGR DoT has said: “Revenue from Pure Internet Service under heading B-Deduct stands deleted.” There has been some staunch criticism of the move from industry quarters which has said that this could mean a major setback to the penetration of broadband in India.

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