President Obama may no longer remain very popular with the US mobile broadband industry as his administration is seeking to augment the state’s revenue by introducing a new fee to be charged to mobile operators. The fee comes at a time when the industry is struggling to maintain growth and profitability, and is likely to irk the industry players.
Many would argue that the President can’t be blamed as he is looking to offset the massive $1.7 trillion that faces him in the form of fiscal deficit. However, the new spectrum license charges would only add to the agony of the mobile broadband industry. For the government, this fee ensures a regular source of returns as it will be charged on an ongoing basis, but the industry players are bound to complain.
The proposed fees will be in the form of a spectrum license charge and would be over and above the license fees that the operators have previously paid to acquire the spectrum.
Most of the players in the US mobile broadband industry had recently expressed their appreciation for the Stimulus Bill that was passed by the Obama administration. The Bill included a massive payout of $7.2 billion in the form of special grants to ensure that high-speed internet connectivity could extend its presence in the rural regions of the US. However, this new development could lead to a potential duel between the powerful communications industry and the new administration.
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on Monday, March 9th, 2009 at 5:03 am
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