According to the 12th Five Year Plan (2012-17) document, the decrease in licence fee for operators for procuring Indian products and Indian manufactured products (IMP) will support telecom equipment manufacturing, reports PTI. 

As per government’s directive, the telecom operators will have to pay 8 per cent of gross revenue as licence fee and services from 2013-14. This is applicable to telecom operators belonging to all categories.

Currently, the government charge 6-8 percent as licence fee from the telecom service providers on the basis of type of service and the circle.

According to Trai, only 12-13 per cent of all the locally made products, produced with the aid of foreign vendors in 2009-10, were used in the sector. However, purely India-made products formed just 3 per cent of the total market, the report said.