The Telecommunications Regulatory Authority (“TRA”) issued a public consultation document along with the proposed draft of a Revenue Reporting Regulation to review how, for the purposes of calculating a license fee, its current reporting regime might be amended to ensure that the annual revenue reporting process operates more effectively.
Commenting on the Consultation, the Authority’s Director of Technical & Operations Eng. Mohammed Alnoaimi was quoted in saying “In accordance with the Telecommunications Law, the funding of operations and activities of the Telecommunications Regulatory Authority (“TRA”) shall be derived from, amongst other sources, a percentage of each individual licensee’s gross annual turnover. The annual license fee is currently set at 0.8% of the gross annual turnover of the licensee attributable to licensed services – which is set very low to attract telecom investments in the country.”
Eng. Alnoaimi added “The proposed draft regulation has been developed based on international best practice, and in particular on revenue reporting guidance set down by the International Telecommunications Union. TRA also wishes to ensure that market players are provided with clear guidance about how to report annual revenues and, in particular, that the issue of what revenues are included and what are excluded for the purposes of calculating the annual license fee is clarified. The approach proposed in the consultation document sets out how best this might be achieved, focusing on the provision of a clear timetable to operators and sanctions for non-compliance.”
Therefore, TRA invites all interested parties to submit written comments with regard to the issues addressed in the consultation document, which is available on TRA’s website.
Once the TRA has received and reviewed all the comments raised by respondents, it will issue its final Revenue Reporting Regulation. TRA plans to issue the final Resolution in 2015 so as to start applying it from 1st January 2016.