Telecom Companies said, no revenue pact with government

Telecom companies on 11th February while challenging Delhi court decision in Supreme Court said that, telecom companies have no revenue-sharing arrangement with government and they only pay licence fee for use of spectrum.

 Delhi High Court on 6th January made a decision that allowed the CAG to audit the revenue receipt of telecom firms to examine whether they under-reported revenue to pay licence fee to the government. The court said the national auditor has the power to audit all the revenue receipts of the government. Telecom companies pay a portion of their revenue as licence fee. The Cellular Operators Association of India, too, has filed a petition challenging the high court decision.

Harish Salve on behalf of the Association of Unified Telecom Service Providers of India said that, the high court decision has confused the charge and the measure. The charge is licence fee which is measured as six per cent of the adjusted gross annual revenue. Salve said the issue was important in light of the growing number of public-private partnerships, as also the large number of contracts involving use of natural resources.        

Source: http://cablequest.org/news/telecom-news/item/4268-telecom-companies-said,-no-revenue-pact-with-government.html