Broadband Services for Indian Households May Get Cheaper as Government Said to Propose a Licence Fee Cut

The proposal in question is yet to receive the cabinet’s approval, though.

Advertisement
By Jagmeet Singh | Updated: 22 June 2020 18:38 IST
Highlights
  • The change is said to bring no impact for commercial users
  • Broadband companies including Jio Fiber are likely to get some benefits
  • The government would get a loss of 592.7 crores through the new change

India has over 1.98 crore fixed-line broadband subscribers, according to TRAI

The government is considering a cut in the licence fee applicable for fixed-line broadband services in India, according to a media report. The change could reduce the cost of household broadband services in the country, and help service providers widen their coverage at lower costs. As per the report, the new proposal will reduce the licence fee on the adjusted gross revenue (AGR) earned by broadband companies for providing Internet connectivity to households in the country — a direct benefit for the service providers. The country has over 1.98 crore fixed-line broadband subscribers, as per the latest data provided by the Telecom Regulatory Authority of India (TRAI).

As per the proposed plan, as reported by Bloomberg, the licence fee on the AGR earned by broadband companies from households will be dropped to Re. 1 a year. The estimated licence fee for the fixed-line broadband services, calculated at a rate of eight percent, is currently about Rs. 880 crore a year, making this a huge change. The proposal in question is yet to receive the cabinet's approval, though it is said to have reached relevant ministries to get their views on the cut.

Advertisement

The report, citing people familiar with the development, said that there wouldn't be any changes for services provided to commercial users. Reportedly, the proposed changes would bring a loss of Rs. 592.7 crores to the government, but at the same time, would result in a 10 percent growth in revenues of broadband companies providing their services to households.

Jio Fiber could get some benefit from the proposed change
Reliance Jio Infocomm's Jio Fiber is likely to be a key recipient of benefits through the proposed changes as it formally launched its broadband services last year but is so far facing a huge competition from existing players, including Airtel and ACT Fibernet. The increase in revenue potentials through the licence fee cut would enable Jio Fiber to accelerate its broadband services in the country.

Apart from Jio, the reduced licence fee, if it gets cleared would help other major broadband service providers. Airtel, ACT Fibernet, and even state-owned Bharat Sanchar Nigam Limited (BSNL) would be able to broaden their revenues and reduce the cost of acquisition through the reported changes.

A TRAI report released in May showed that Jio Fiber captured at the fifth position in the wired broadband market in the country with 8.4 lakh users at the end of January 2020, while BSNL continued its lead with 82.3 lakh subscribers and Airtel stood at second number with 24.3 lakh subscribers. Jio Fiber reported a decline of 20,000 subscribers as compared to 8.6 lakh subscribers previously.


In 2020, will WhatsApp get the killer feature that every Indian is waiting for? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts or RSS, download the episode, or just hit the play button below.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement
Popular Mobile Brands
  1. Apple's iPhone Duo Hands-On Video Shows Soft Spot Around Display Crease
  2. iOS 27.2 Update: Six iPhone Apps Set to Get New Features Next Week
  3. Oura Launches Ring 5 in India Equipped With These Features
  4. Infinix Note Edge JBL Edition First Impressions
  5. Oppo Reno 16 Price in India Rises, New 128GB Model Launched
  1. Microsoft Rolls Out Standalone Cloud Playtime Packs to Xbox Insiders
  2. Xiaomi 18 Pro Max, Oppo Reno 17 5G Receive NBTC Certification Ahead of Global Launch
  3. Oura Ring 5 Launched in India With AI Health Features, Blood Pressure Tracking: Price, Specifications
  4. Bitcoin Holds Near $83,000 as Tesla Keeps 11,509 BTC Holdings
  5. OnePlus Turbo Pro Tipped to Launch With 185Hz Refresh Rate Display, 200-Megapixel Rear Camera
  6. Claude Duet AI Assistant Research Preview Powered by Opus 5.5 Model Released as a Standalone iOS, Android App
  7. Vivo Y600 Launch Date Confirmed for October 30 in China, 10,000mAh Battery Revealed
  8. Apple's iPhone Duo Hands-On Video Shows Soft Spot Around Display Crease
  9. Oppo Reno 16 Price in India Hiked by Up to Rs. 7,000, New 128GB Variant Introduced
  10. iQOO 16R Spotted on TKDN Certification Website, Launch Could Be Imminent
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.