With just few days left to the spectrum auction, Telecom Commission (TC) is expected to meet on Saturday and finalise the spectrum usage charges (SUC). With the meeting of Empowered Group of Ministers (EGoM) scheduled on January 27, sources said that the TC’s decision would immediately be tabled in front of the EGoM for the final nod.
Commenting on the possible option TC might opt for, sources said, “TC would discuss all the possible options and announce their final decision as to what would the uniform SUC levied on telecom operators. TC might keep the SUC on broadband wireless access (BWA) unchanged, at one per cent while for mobile operators might impose a uniform charge of 3- 5 per cent.”
Sources further added that the Finance Ministry has suggested that mobile operators winning in the upcoming auction should be charged only 3 per cent of their revenue as annual fee for radiowaves they hold. While for BWA players, the Department of Economic Affairs (DEA) has suggested continuation of 1 per cent and levy a SUC, a weighted average of 3 per cent and 1 per cent, if the players buy more spectrum in February 3 auctions.
After its meeting earlier in the month, TC had said that it needs more time to analyse all possible options before making the decision. Major telecom operators including Bharti Airtel and Vodafone have written to the Department of Telecom (DoT) to take a call on SUC before auction starts on February 3.
Earlier, the Telecom Regulatory Authority of India had suggested a uniform fee 3-5 per cent from April 1, across telecom services for the success of the next round of spectrum auction. GSM industry body Cellular Operators Association of India is demanding that the government implement Trai suggestion. On the other hand, Reliance Jio and Videocon Telecom are opposing any change in existing SUC regime, specially those radiowaves that have been already allocated.
levied annually by the Government, SUC currently varies from 3-8 per cent for mobile service providers and 1 per cent for holders of BWA spectrum that can be used for 4G services. If a uniform SUC is implemented as recommended by Trai, mobile operators such as Airtel, Vodafone and Idea would be benefited the most. While a uniform SUC would adversely impact Reliance Jio Infocomm ltd (RJIl) which currently holds the BWA spectrum at one per cent SUC.