New guidelines issued by DoT restricting payments for digital contents through mobiles will only hamper Prime Minister Narendra Modi’s push towards making India a digital economy…

NEW DELHI, APRIL 19, 2017: Mobile subscribers will not be able to pay over Rs.20,000 in one go to buy a service or download content by using their pre-paid account balance or through post-paid bills, as per an order from the Department of Telecommunications.

“The subscribers can download all paid digital contents through their mobile phones and the payments for such contents can be made using their mobile pre-paid account balance or post-paid bill payment methodology with a maximum value not exceeding Rs 20,000 each time,” the order said.

Many subscribers pay for downloading digital contents like mobile application, ebooks, movies etc through their pre-paid balance or post-paid bill system option. The system is helpful for those subscribers who do not have access to debit, credit cards or net banking system.

The payment made by using mobile balance or bill will not be deducted from telecom operators total revenue to calculate adjusted gross revenue (AGR).

“Such purchase of digital content shall not be treated as pass-through revenue for the purpose of computing AGR for licence fee and spectrum usage charge,” it said.

Telecom operators in the country are required to pay a percentage of adjusted gross revenue to the government.

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