TRAI recommends 5% revenue sharing for paging service providers

By : |July 22, 1999 0

The Telecom Regulatory Authority of India,
in its recommendations to the government on license fee structure for radio paging service
providers in cities, proposed five percent revenue sharing of the network revenue as the
quantum of license fee from fourth year onwards. Prior to NTP’99, DoT had sought TRAI’s
recommendations on the license fee of radio paging service operators, which was due for
review after three years of service.

According to the observation of TRAI, high license fee
during first three years of operation has adversely affected the financial viability of
the operators. It believes that radio-paging market is sufficiently competitive with 3-4
service providers in each city.

While these landmark recommendations will enhance the
viability of paging service industry in the country, it can also become a benchmark for
implementing new revenue sharing structure in other segments, the onus of which too lie on
the authority.

                                 

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