Broadband Bills Might Reduce, If Govt Trims License Fee

If you are working from home and paying a heavy bill for the broadband connection, then there is good news for you as the government is reportedly planning to bring new initiatives. The centre is likely to reduce the license fee for the fixed-line broadband services.

The government is expected to slash average revenue per user on fixed-line broadband services by Rs. 1 a year, reports Bloomberg. The report states that currently, broadband service providers are providing 8 percent AGR to the government, which is close to Rs. 880 crore per year.

The centre has asked all relevant ministries to give their suggestions on this proposal as it requires cabinet approval before implementation. Besides, it is expected that the new move will help both Reliance Jio and Airtel.

Reducing AGR On Fixed-Lines Might Help Reliance Jio

The report said that if the cabinet clears this proposal, then Reliance JioFiber will expand its services faster than before. Currently, JioFiber is offering six broadband plans in the country, that starts from Rs. 699 and goes up to Rs. 8,499, where you get unlimited calling, gaming, high-speed internet, TV video calling, set-top boxes, device securities, and content from its application along with Amazon Prime and Zee5.

At present, JioFiber has more than 1 million customers on its platform, while Airtel Xstream is offering three plans to its customers, where you get calling, data, and content benefits. Airtel is also expanding its reach in the country.

In fact, both Reliance JioFiber and Airtel have captured 26 percent market share in the broadband sector, while government-owned BSNL and MTNL are leading the segment with a 56 percent share in the wired broadband, as per TRAI figures.

Reason Behind Reducing AGR

The proposal needs to go through cabinet approvals, and the ball is under their court. So, it would be difficult to give any timeline. The main reason behind reducing the AGR is to increase internet penetration or deployment in the rural part of the country as it is expected to help the country GDP in the coming years.

In our opinion, connectivity plays important role in the development, and if people will get good internet at cheap or affordable prices, then this will help them to remain connected, educated, and they will get a chance to know about new technologies.

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