DoT Allows Telcos to Reduce Spectrum Usage Charges on Fresh Radio Waves in 5G Auction

Government will auction about Rs. 4.3 lakh crore worth of airwaves capable of offering 5G telecom services including ultra-high-speed internet.

Advertisement
By Press Trust of India | Updated: 23 June 2022 04:55 IST
Highlights
  • Government will auction about Rs. 4.3 lakh crore worth of airwaves
  • Airwaves will offer fifth-generation or 5G telecom services
  • DoT collects SUC from a company based on a weighted average method
DoT Allows Telcos to Reduce Spectrum Usage Charges on Fresh Radio Waves in 5G Auction

Government last year approved removal of SUC from future auctions

Photo Credit: Pixabay / ADMC

The Department of Telecom (DoT) has issued a new order that will enable telecom operators to reduce spectrum usage charges proportionately on buying fresh radiowaves in the upcoming 5G auction.

The DoT, in the order dated June 21, has removed spectrum usage charge (SUC) from the radiowaves that will be bought in the auction scheduled to start from July 26.

The government will, next month, auction about Rs. 4.3 lakh crore worth of airwaves capable of offering fifth-generation or 5G telecom services including ultra-high-speed internet.

The DoT collects SUC from a company based on a weighted average method, where charges applicable for each auction and spectrum acquired is taken into account and the sum is divided by the total spectrum acquired by it in various auctions.

Advertisement

The order notifies a new formula which makes the SUC rate nil for the upcoming auction.

Till the previous auction, telecom operators were required to pay SUC based on 3 percent of the amount at which they purchased the spectrum. The Cabinet in September 2021 had approved removal of SUC from future auctions.

Advertisement

"The SUC order by DoT is a positive move with 3 percent interpretatively going off. Industry could see the real benefit of nil SUC charges proposed in the 5G auction being available to the participating players," EY Global TMT Emerging Markets leader Prashant Singhal said.

"We welcome and thank the government and Minister of Communications for the much-awaited DoT order regarding the levy of SUC charges for spectrum... The order will provide clarity to telecom service providers for the upcoming auctions," industry body COAI Director General S P Kochhar said.


Should you buy a 4G or 5G budget phone? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: DoT, 5G Spectrum, 5G auction, India
Advertisement

Related Stories

Popular Mobile Brands
  1. OnePlus 13s Price in India Leaked Ahead of Launch on June 5
  2. Realme Neo 7 Turbo With 7,200mAh Battery Goes Official; All Specifications
  3. Motorola Launches G86, G86 Power, and G56 With These Specifications
  4. Nothing Phone 3 to Drop Signature Glyph Interface in Major Design Shift
  5. Vivo S30, Vivo S30 Pro Mini Launched With 50-Megapixel Selfie Camera
  6. Tecno Pova Curve 5G Launched in India With This Price Tag
  7. Lava Bold N1, Lava Bold N1 Pro Debut in India With Budget Price Tags
  1. Reliance Jio Leads April Subscriber Gains, BSNL Loses 1.8 Million Active Subscribers: TRAI Data
  2. Vivo Pad 5 With MediaTek Dimensity 9300+ Chipset, 10,000mAh Battery Launched: Price, Specifications
  3. Motorola G86 and G86 Power With Dimensity 7300 Chipsets Launched Alongside Motorola G56
  4. Nothing Phone 3 Teased to Drop Signature Glyph Interface in Major Design Shift
  5. MIT Study Reveals Why Roman Concrete Lasts Thousands of Years
  6. New Study Confirms Venus Is Still Geologically Active
  7. New Analysis Weakens Claims of Life on Distant Exoplanet K2-18b
  8. Viking Trade Routes More Expansive Than Thought, Finds Swedish Archaeologist After 5000 km Expedition
  9. China Launches AI-Powered Satellite Constellation to Build Space Supercomputer
  10. China and Russia Sign Deal to Build Lunar Nuclear Power Plant by 2036
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.