DoT orders special audit of Bharti Airtel | india | Hindustan Times
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DoT orders special audit of Bharti Airtel

Not satisfied with Bharti Airtel’s reply on the charges of shifting of revenues from access services to revenues from long distance services, the Department of Telecommunications is set to conduct a special audit of its accounts of various licences.

india Updated: Mar 30, 2009 20:40 IST
Manoj Gairola

Not satisfied with Bharti Airtel’s reply on the charges of shifting of revenues from access services to revenues from long distance services, the Department of Telecommunications is set to conduct a special audit of its accounts of various licences.

At present, telecom operators have to pay a licence fee of about 6 per cent of annual gross revenue on long distance services to the government. For access services (mobile and fixed line), the licence fee is up to 10 per cent.
The DoT is investigating whether the company has shown revenues earned from access services as revenues from long distance services to avoid paying licence fees.

In an internal note, the DoT has said that outside auditors should be appointed for special audit of the accounts of various licences for 2006-07 and 2007-08 to ensure that the revenues were being declared correctly for the purpose of licence fee.

“Bharti Airtel has always strictly adhered to the regulatory requirements and processes,” the company said in a statement. “In our communication to the regulator, we have already clarified the queries raised by them, which are in complete compliance and within the regulatory framework. Our carriage charges for the NLD business are well within the ceiling provided by the authority and as per market practice & non-discriminatory.”