DOT seeks approval for waiver of license fees in rural areas

To increase fixed line telecom density in rural India, last year, DOT planned to roll out services in rural areas. It also targeted an ambitious target of rural telecom density of 25% as against the present 12%. DOT also amended the terms of the basic services and universal access service (UAS) license to accommodate the telecom license fee waiver. This move was aimed to benefit state-owned BSNL and private players Reliance Communications, Bharti Airtel, HFCL and Tata Teleservices.

The finance ministry had however objected the license fee waiver. It objected that DoT should have ideally moved a note for Cabinet consideration which it never obtained its concurrence to the proposal. Due to the growing tiff between DOT and finance ministry, DOT will seek the approval of the Union Cabinet t waive off license fees for fixed line services in rural areas.