The Hindu Business Line : DoT relaxes penalty for delayed licence fee payment

THE Department of Telecom has reduced the penalty for delayed licence fee payment by telecom service providers. It has also relaxed the penalty for paying licence fee lower than what is payable.

As per the new guidelines any delay in payment of licence fee or any other dues payable under the licence beyond the stipulated period will attract interest at a rate of 2 per cent above the Prime Lending Rate of the State Bank on the beginning of the fiscal (April 1). Earlier, the interest rate stood at 5 per cent.

In case the total amount paid as quarterly licence fee for the 4 quarters of the fiscal falls short by more than 10 per cent of the payable fee, it will now attract a penalty of 50 per cent of the entire amount of short payment from this fiscal. Earlier this penalty was 150 per cent.

This amount of short payment along with the penalty shall be payable within 15 days of the date of signing the audit report. Long distance operators like Reliance Infocomm, unified access service providers like AirTel and Infrastructure Provider Category-II operators like RailTel will gain from the move, in the event of a default in licence fee payments. DoT has sent a letter to the service providers and Telecom Regulatory Authority of India notifying the changes in the licence conditions.

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