Well, it is good news for sure for millions of users all across the country that the broadband charges may get cheaper as govt may cut the license fee for household connections. If done, it will boost access to broadband connections and lower the cost of using internet services to a greater extent.
As per the recommended plan, the license fee on the adjusted gross revenue that is earned from numerous households for providing them with fixed-line broadband services is planned to be slashed to Rs 1 a year (0.01 cents). The note said that the license fee for fixed-line broadband services which is computed at the rate of 8% of adjusted gross revenue, is nearly 8.80 billion rupees per year.
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The proposal has already been sent to the relevant ministries and has asked for their point of view on it. Once it is done, authorities will share it with the cabinet for their approval. Broadband charges may get cheaper as govt may cut the license fee. If this move is implemented and approved, it will benefit not just the companies like Mukesh Ambani backed Reliance Jio Infocomm Ltd. but also its counterparts Vodafone Idea Ltd. and Bharti Airtel Ltd.
It is to be noted that the agencies have not included business establishments, commercial users and large corporations under its proposed plan. Broadband charges may get cheaper as govt may cut the license fee. This proposal also included a report from International Telecommunication Union which says that there would be a 10% increase in fixed-line broadband connections which will approximately increase gross domestic product per captia by 1.9%.
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The recent coronavirus breakdown forced the country to do work from home. And thing got possible because they had a broadband connection in place. Luckily, the Indian broadband service providers were able to meet this demand in the need of the hour.
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