Airtel hikes broadband rentals after DoT levies 7% license fee

Airtel has revised rates for its broadband DSL plans and is making it effective both for existing and new users. The service provider has increased the rental rates only for DSL users, who are getting text messages regarding the same. Airtel is blaming “regulatory changes and increased input costs” as the reason for the increase.
An Airtel spokesperson told BGR India that DSL rentals have been increased marginally ranging from Rs 50 to Rs 150, depending on the plan.
The increase is due to a DoT amendment to the ISP license agreement that has added a 7 percent of Annual Gross Revenue (AGR) as license fee for ISPs providing Internet Telephony along with Internet services and 4 percent of AGR for those not providing Internet Telephony. The fee will be made uniform to 8 percent across ISPs starting April 1, 2013 onwards.
It is likely that other ISPs will increase their tariffs too.