Even if household broadband usage reaches a new peak, the Indian government is considering a plan to reduce license fees for fixed broadband services to households. There are reports that the government has asked some departments to share their views on the proposal, which will then go to Cabinet for approval. In simple and practical terms, this means that the monthly household broadband bill has the potential to decrease. There are indications that the government is reducing license fees on adjusted gross earned income for households to provide fixed broadband services to Rs 1 per year. If it comes into effect, the Indian government will have to give up Rs. 5000 crores. It is said that there would be no changes to the services provided to business users. The government proposal builds on another 2019 government report that said a 10% increase in fixed broadband internet can lead to a 1.9% increase in domestic GDP per capita. According to government sources, the idea is also to help service providers expand their coverage at a lower cost. Fixed broadband penetration in India is currently very low at 6,1%, which could easily more than double in the next few years. From one perspective, China has a fixed broadband penetration of 86%.
India to consider a proposal to cut license fees for home broadband services, a move to increase access in Asia's third largest economy https://t.co/r9WMBhlsMG via @technology June 22, 2020