Govt unlikely to implement uniform spectrum charge of 3 pc

Tags: News
The Department of Telecom is close to reaching a mid-way on the contentious issue of annual spectrum charges which might see it neither implementing the uniform level of 3 per cent as recommended by regulator Trai nor maintaining it at the current upper limit of 8 per cent.

"We have discussed it (solution) with industry players and they seem to be satisfied with it. It is very unlikely that we will lower it to 3 per cent but it is also not going to be at 8 per cent," a government source told PTI.

Spectrum Usage Charge (SUC), a bone of contention between leading GSM players and Mukesh Ambani led Reliance Jio Infocomm (RJIL), is levied annually as a percentage of revenue earned by telecom companies. It varies from 3-8 per cent.

GSM industry body Cellular Operators Association of India has demanded that the government implement Telecom Regulatory Authority of India's (Trai's) suggestion for a uniform SUC - 3 to 5 per cent - from April 1, across the telecom services sector for the success of the next round of spectrum auction scheduled to start from February 3.

If Trai's recommendations are accepted by the government then it will burden firms holding broadband wireless access spectrum, including RJIL that at present pays 1 per cent SUC, it added.

On the other hand RJIL and Videocon Telecom have opposed any change in existing SUC regime, specially airwaves that have been already allocated.

RJIL has also said that recommendation of Trai will not stand scrutiny of law and will also disturb level playing field in the industry.

EDITORIAL OF THE DAY

  • Saffronites need to build their own edifices and narratives

    The news that the BJP-led NDA government, no admirers of India’s first prime minister, want to give a ‘contemporary’ look to the capital’s mos

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Amita Sharma

Examining times for learning

The central advisory board of education in its meeting on ...

Zehra Naqvi

Capturing change

The pace of change in the world around us can ...

Gautam Gupta

Bring on the Benares brigade

It was in 2003 when I first started work and ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture