Ahead of the union budget, DoT has reportedly favoured reducing the excise duty on all telecom equipment from 16 per cent to 8 per cent as well as removing the 8 per cent countervailing duty on telecom software. It may also recommend a single-levy regime for telecom service providers. Currently, operators pay licence fees, spectrum charges, Universal Service Obligation (USO) charges and other levies separately. However, DoT may not agree to other industry demands such as rationalising the licence fee at a uniform rate of 6 per cent of the adjusted gross revenue (AGR), extending the tax holiday time-frame, and removing service tax on incoming international mobile roaming calls.