In a move that could spell some relief to private national long distance (NLD) players, DoT is considering the proposed reduction in the revenue share licence fee across the board. This will allow the benefits of the licence fee reduction to be availed of by both the existing and new players. It will also reduce litigation from NLD players who have paid higher entry and licence fees in the past.

The government is considering a new NLD policy that will promote competition in the sector. The new policy proposes reducing the licence fee to Rs 6.25 billion from Rs 25 billion, entry fee to Rs 2.5 million from Rs 1 billion and fixing the revenue share licence fee at 6 per cent instead of the existing 15 per cent. Several existing NLD operators including Reliance Infocomm, Videsh Sanchar Nigam Limited (VSNL) and Bharti have opposed such reductions on the ground that they do not ensure a level playing field for operators who have paid much higher fees in the past.

Chances of these players getting compensation from the government are slim.