Amid constant demand to set a uniform spectrum usage charges (SUC) from GSM operator, Mukesh Ambani led Reliance Jio Infocomm limited (RJIl) opposed any change in rates for the use of radiowaves by mobile operators. In a letter to the Telecom Secretary, RJIl said, “Unilateral increase in SUC for BWA spectrum from 1 per cent to 3 per cent will be illegal. Government may take appropriate decision on SUC for forthcoming auctions but without altering the present SUC regime, either directly or indirectly, for already auctioned spectrum.”
levied annually by the Government as a percentage of revenue earned by mobile operators from telecom services, SUC varies from 3-8 per cent. The uniform SUC, if implemented as per recommendations made by Telecom Regulatory Authority of India, will provide relief for mobile operators such as Airtel, Vodafone and Idea, but will increase rates for broadband wireless access (BWA) spectrum holders like RJIl. Telecom Commission is expected to meet on December 31 to discuss possible approaches towards SUC and then would send its recommendations to Empowered Group of Ministers on telecom, headed by Finance Minister P Chidambaram.
The company said the terms and conditions of Notice Inviting Application, main document of spectrum auctions, are equally binding on both DoT and bidders and “any post facto deviation in auction rules which extends undue benefit to incumbent operators will not stand judicial scrutiny.”