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Internet Service Providers (ISP) have filed a petition with the telecom tribunal opposing a move by the Department of Telecom to impose a higher licence fee.
The DoT has decided to levy a four per cent licence fee on ISPs from July 1. The ISPs at present do not pay any licence fees. This will further be increased to seven per cent from the current six per cent. From April 1, all operators have to pay a uniform eight per cent of the annual revenue.
Net tariff to increase
According to the Internet players, the move will increase tariffs for Internet users as the increase in costs will be passed on to the subscribers. The plea has been filed by the Internet Service Providers Association of India along with 10 Internet companies.
In the petition, the Internet companies have argued that a contract cannot be unilaterally amended by one of the parties without the consent of the other.
“License can be modified only in public interest or for proper conduct of service. Neither of the two conditions can be said to justify the impugned Circular,” the petition said.
“The impugned amendment (DoT’s decision) would have the effect of putting unjustified financial burden on the Petitioner (ISPAI) without any justifiable reason and is totally unreasonable, arbitrary and disproportionate,” it added.
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