Telecom Ministry to Approach Cabinet to Reduce Spectrum Usage Charges

Advertisement
By Press Trust of India | Updated: 4 April 2016 13:24 IST

Telecom Ministry is expected to approach the Cabinet for its nod to reduce spectrum usage charges from existing 5 percent to 3 percent of the revenue earned by companies from telecom services.

"The Telecom Commission has agreed to charge SUC (spectrum usage charges) at 3 percent level of adjusted gross revenue on spectrum that will be purchased in next round of auction. It will be sent to the Cabinet for final approval," an official source told PTI.

Advertisement

Spectrum usage charges were earlier linked to quantum of spectrum holding of an operator in range of 3-8 percent of their adjusted gross revenue.

After evaluating impact on the exchequer, government in January 2014 decided to cap SUC at 5 percent on spectrum that were to be procured in future auction. The SUC collection was at 4.8 percent level that time.

Existing telecom operators were asked to pay the weighted average of their existing SUC (on old rate of 3-8 percent), and 5 percent if they acquire new spectrum. The Telecom Regulatory Authority of India has recommended to charge SUC at uniform rate of 3 percent across the industry.

However, the recommendation faced stiff opposition from Reliance Jio which holds pan India broadband wireless access spectrum on which 1 percent SUC is imposed.

Advertisement

The government had then asked all BWA holders, including Aircel, Airtel, to continue paying 1 percent on BWA but they were asked to pay 5 percent of adjusted gross revenue on all spectrum they will purchase in future.

 

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.

Further reading: Aircel, Airtel, DoT, Reliance Jio, Spectrum, Telecom, Trai
Advertisement

Related Stories

Popular Mobile Brands
  1. Infinix GT 50 Pro vs iQOO 15R vs OnePlus 15R Ultimate Comparison
  2. Best Samsung Smartphones Under Rs. 50,000 in India
  1. Reddit to Require Users to Log in to Browse Platform, Testing to Begin Soon
  2. Oppo Reno 17 Series China Launch Set for November, Oppo Pad Air 6 and Watch 5 Teased
  3. Google Gemini Personal Avatars: How to Create, Share and Delete Them
  4. Samsung Galaxy Fit 4 Features Allegedly Revealed Through Companion App Teardown
  5. AU Small Finance Bank Investigates Potential Leak; Vijay Sales Systems Allegedly Offered for Sale
  6. Assassin's Creed Valhalla, Black Flag Resynced Get New Game+; Ubisoft Shares Update on Assassin's Creed Hexe
  7. North Korea’s Lazarus Group Linked to Alleged $6.3 Billion Binance Hack
  8. Samsung's Galaxy Glasses to Launch in Select Markets in December: Report
  9. Binance Faces Historic Crypto Hack as Emergency Response and Market Fallout Unfold
  10. Canva’s New Vision-Language Model Lets You Edit, Refine Designs Using Prompts With Lower Editing Costs
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.