With most of the telecom operators demanding more time and clarification on the spectrum usage charges (SUC) along with other issues, the Department of Telecommunications (DoT) has postponed the upcoming spectrum auction. As per the official statement released by DoT, spectrum auction is being deferred till February 3 from January 23, 2014.
As per the official timeline issued by DoT, "The clarifications to the Notice Inviting Applications (NIA) will now be issued on January 2 and the auction would start from February 3. Also last date for submission of applications is now moved to January 15." Official sources said that most of the telecom operators have demanded more time to prepare for the auction. Also there are issues related to SUC, along with other matters that have been raised by potential bidders, official added. The Telecom Commission, an inter-ministerial panel, is scheduled to meet on December 31 to discuss the matter of SUC. Industry has demanded lowering of SUC as recommended by the TRAI, while a section of players have opposed it.
SUC is levied annually by the government as a percentage of revenue earned by mobile operators and varies from 3-8 per cent. The Telecom Regulatory Authority of India had recommended a uniform SUC of 3 per cent from April 1, with an upper limit of 5 per cent. DoT also extended the last date for applying for the spectrum auction to January 15 from January 4. About 403 megahertz of 2G spectrum in the 1800 MHz band and about 45 MHz of spectrum in the premium 900 MHz band is being put up for auction.
The Government is expecting a minimum of Rs 11,300 crore from the upcoming spectrum auction. It has set a revenue target of Rs 40,874.50 crore this fiscal year from spectrum, including auction amount, one-time spectrum charge and annual regular licence fee.