Broadband services that are now more in use due to the new work from home norm are likely to get cheaper as the government may reduce the license fee for fixed line broadband.
As per people privy of the development, license fee levied on AGR made from households for offering fixed line broadband will be dropped to Rs. 1 per year. The note said the estimated license fee for fixed-line broadband services, calculated taking 8% rate of adjusted gross revenue, is about 8.80 billion rupees a year.
There will be a deliberation by the concerned ministry on the call before the proposal is finally taken up with the cabinet.
If the proposal goes through Jio which disrupted the telco industry will benefit immensely after it launched its broadband plans last year. Also, the move will help Bharti Airtel as also Vodafone Idea.
However, the change in policy is not proposed for large scale users such as commercial establishments. Though the proposal may mean the government losing Rs. 5927 crore considering 10% uptick in revenues over a 5 year period but lending greater access through reduced rates may result in an impact that could be worth for including job creation.