EGoM decides on 5 percent spectrum usage charge for new spectrum

Advertisement
By Press Trust of India | Updated: 27 January 2014 15:37 IST
Telecommunications companies that are all set to bid for spectrum in the upcoming February 3 auction will need to pay five percent of their annual gross revenue as spectrum usage charge (SUC), an Empowered Group of Ministers (EGoM) decided in New Delhi on Monday.

"For all new spectrum which will be sold, it will be five percent but it will be charged at weighted average," Telecom Minister Kapil Sibal told news persons after the meeting. The decision will now go to the union cabinet for its final nod.

The SUC for broadband wireless access (BWA) spectrum will continue to remain at one percent, Sibal said. He added that "ultimately it is consumers who need to benefit".

Advertisement

At a meeting held by the Telecom Commission on Saturday, three options for SUC three percent with weighted average, five percent with weighted average and continuing with the current charge were discussed.

The SUC is levied annually as a percentage of revenue earned by telecom companies, which varies from 3-8 percent. The Telecom Regulatory Authority of India TRAI had earlier suggested a uniform 3-5 percent fee from April 1 across the telecom services for a successful next round of spectrum auction.

Advertisement

(Also see: TRAI reiterates spectrum auction proposal to cut base price by 60 percent)

In 2012-13, the government's revenue collection from SUC was Rs. 5,689 crores.

Advertisement

Eight telecom service providers have applied to take part in the second generation (2G) spectrum auction due February 3.

(Also see: Eight telecom operators apply for February 3 spectrum auction)

The companies are Reliance Communications, Reliance Jio, Bharti Airtel, Vodafone, Telewings, Aircel, Tata Teleservices and Idea Cellular.

Advertisement

The total spectrum to be put on auction is 46MHz in 900MHz band and 403.2MHz in 1800MHz band.

The government expects to mop up Rs. 40,874.50 crores from this spectrum auction.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Ustaad Bhagat Singh OTT Release, Plot, Cast & Review: All You Need to Know
  2. Vivo X300 FE Could Be Available in These Two Storage Options in India
  1. Piece by Piece: Pharrell Williams’ LEGO Documentary Now Streaming on Netflix
  2. Ustaad Bhagat Singh OTT Release: When & Where to Watch Pawan Kalyan’s Telugu Film Online
  3. Battleground Season 2 Now on OTT: Know Where to Watch This Ultimate Fitness Reality Show Online
  4. Apne Paraye Out on OTT: Know Where to Watch This Hindi Dub of Bengali Drama Series
  5. Scientists Just Created the Largest 3D Map of the Universe Ever to Study Dark Energy
  6. Honor 600 Pro and Honor 600 Key Specifications, Features Revealed via Official Listing
  7. Ethereum NFT Platform Shuts Down After Blacklove Sale Falls Through
  8. Vivo X300 FE Storage Options Leaked Alongside Live Image With Telephoto Extender Kit
  9. Indian Smartphone Shipments Dropped to Six-Year Low in Q1 2026 as Vivo Topped Market, Nothing Led Growth: Counterpoint
  10. Canva Introduces Canva AI 2.0, Brings Agentic Capabilities and Memory to Perform Design Tasks
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.