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Internet Service Providers move tribunal against licence fee

Internet Service Providers move tribunal against licence fee

By Press Trust of India | Updated: 7 July 2012 12:36 IST

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Internet Service Providers (ISPs) Friday approached sectoral tribunal TDSAT against the government imposing a licence fee of 4 per cent of their adjusted gross revenue (AGR).

Internet service providers' association ISPAI has submitted that the government cannot "unilaterally amend the Licence Fee during the currency of the Licence Agreement".

The government in an order on June 26, 2012 imposed an annual licence fee of 4 per cent of AGR on Internet providers, who were not providing Internet-based telephone services.

Earlier, the service providers were only providing a notional licence fee of Re 1 only. Those who were providing Internet telephony and paying a fee of 6 per cent of AGR, have been asked to pay 7 per cent.

Moreover, from April, 2013, both ISPs providing Internet or Internet with telephony services will have to pay licence fee of 8 per cent of their AGR.

The Internet service providers have requested the tribunal to "quash and set-aside the impugned circular" or to pass "an ad-interim ex-parte order staying the operation of the impugned Circular" immediately.

In the petition, service providers said that they have licence contracts with the Ministry of Communications & IT, having clear provision of licence fee.

"A contract cannot be unilaterally amended by one of the parties without the consent of the other," they said.

ISPAI's plea is scheduled to be listed on Monday before a two-member bench of Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

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