Videocon Telecom against lowering of spectrum usage charge

Advertisement
By Press Trust of India | Updated: 6 January 2014 17:11 IST
Telecom operator Videocon Telecom said on Monday that it favoured the continuation of the existing annual spectrum charge for incumbent operators, but suggested that it be kept at 1 percent for the radio-waves that have been sold through auction.

"Earlier, spectrum was allotted administratively, but now companies need to buy it through auctions. You can't change policy now in favour of incumbents," Videocon Telecom Director and Chief Executive Officer Arvind Bali told PTI.

The spectrum usage charge (SUC), which is levied annually by government as a percentage of revenue earned by mobile operators, varies from 3-8 percent.

Advertisement

The Telecom Regulatory Authority of India (TRAI) has recommended levying of uniform SUC 3-5 percent from April 1, 2014 across the sector.

Bali said government should charge only administrative fee as SUC, which should not be more than 1 percent for the companies that have bought spectrum through auctions.

This annual fee is currently 1 percent for firms with broadband wireless spectrum, including Reliance Jio Infocomm Ltd (RJIL) and Tikona.

While GSM players like Airtel, Vodafone, Idea Cellular and Uninor have been demanding implementation of uniform SUC, RJIL has opposed any such move.

Advertisement

Bali said the communication of top executives of the four GSM companies was facilitated by the Cellular Operators Association of India (COAI), of which Videocon is also member.

"We resented and refused to sign that letter as we participated in the auction only after assessing the whole industry scenario and the policies cannot be changed now," Bali said.

Advertisement

Inter-ministerial panel Telecom Commission is scheduled to meet on Tuesday to discuss SUC.

The DoT is likely to place before inter-ministerial panel Telecom Commission six different scenarios based on probable revenue impact for the exchequer, linked to changes in annual fee to be paid by companies on spectrum usage.

Advertisement

The views of TC will be sent to the Empowered Group of Ministers (EGoM) on telecom, headed by finance minister P Chidambaram, which will take a call on it.

The EGoM could also determine whether their decision will need final approval from Cabinet.

 

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. Airtel Launches Three Voice-and-SMS-Only Prepaid Recharge Plans
  2. Redmi K100 Will Launch on This Date: See Design, New Colourway
  3. Want Big-Screen Experience At Home This Diwali? BenQ CEO Reveal The ideal Projector Budget
  4. Oppo F35 Pro 5G Review: An 8,000mAh Battery and a Lot to Like
  1. Cysic Shuts Down Bridge After Attacker Illegally Creates 10 Million CYS Tokens
  2. JPM Coin Arrives on Ethereum as JPMorgan Expands Institutional Payments
  3. Vivo V80 FE Reportedly Spotted on BIS Certification Website, India Launch Seems Imminent
  4. Airtel’s New Recharges in India Announced: Rs. 185, Rs. 203 and Rs. 206 Voice-Only Plans Details
  5. Vivo X500 Ultra Leak Reveals Launch Timeline, Chipset, Display and Key Specifications
  6. iQOO Neo 12 Launch Date Announced; Design, Colour Options Teased
  7. Qubic Halts Chain as Attacker Exploits Weak Seeds to Drain 1,400 Wallets
  8. iPhone Duo Battery Capacity Revealed Days Before Foldable Goes on Sale
  9. Poco X8s Gets Listed on Another Certification Website, Hinting at Imminent Launch
  10. Redmi Pad 3 Spotted on Multiple Certification Sites Ahead of Launch; Key Specifications Revealed
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.