The DoT’s move to implement an 8.5 % of adjusted gross revenues (AGR) as uniform licence fee may not go down well with all the operators. While it certainly is expected to impact the ISPs who presently pay only 6 % as annual licence fee, the new move will also end up having a mixed impact with the mobile service providers’ community.

A new study by Ambit Capital reveals that Bharti will witness a 0.03 % impact on licence fee. Its current estimated licence fee percentage comes out to be 8.47 %. Reliance which pays 6.03 % as licence fee will see an impact of 2.47 %. Idea Cellular however stands to benefit out of the move as it currently pays 8.92 % as licence fee.

The impact on service providers will mainly be due to the fact the uniform licence fee will impact the NLD, ILD and ISP business verticals. At present operators pay about 2-6 % of their revenues from these services as annual licence fee. Again here RCom is seen to be affected the most as it pays only 2.65 % presently for revenues earned through NLD,ILD and ISP services.

Telcos are expected to benefit in metros where they pay as much as 10 % of their AGRs as licence fee. Operations in category ‘C’ circle will suffer the most as the annual licence fee paid by service providers in these circles is 6 % at present.