| The MoF may also seek the Telecom Commission to "revisit the issue", after studying the revenue pattern for the current and next financial year. |
| "Given the paucity of estimates on reduction in tariffs and increase in traffic, it appears that there could be a revenue loss in 2006-07, which could be made up thereafter, the Ministry said in its letter, addressed to DoT Secretary J S Sarma. |
| The ministry also came down heavily on DoT's decision to reduce license fee or ILD and NLD to 6 per cent from the earlier 10 per cent and added "that no attempt has been made by DoT at estimating the effects of decreased license fees on tariffs and consequently on traffic". |
| It also said that DoT should take a holistic view in future - like license fee, entry fee and spectrum charges among others - and should evolve a transparent and stable regime in consultation with MOF, which has the "ultimate responsibility of revenues of the government". |
| However, the ministry has asked DoT to "proceed with their (its) proposal to reduce license fee" as the reduction was already announced through a press note". |
| Concerned with the inflows to the national exchequer, MoF "if necessary" intends to request the Telecom Commission to revisit the issue after studying the revenue pattern in the current and next fiscal. |
| The ministry had expressed its displeasure on DoT's Press Note issued on November 10, 2005, stating that the "license fee of 10 per cent may have been more appropriate to reduce adverse revenue implications, with a further reduction considered on the basis of experience". |
| The estimated size of ILD and NLD voice market in the country today stands around 12 billion and 20 billion minutes respectively. The tariffs of long distance services have also seen a drop especially after IndiaOne was launched. |
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