Telcos get relief on spectrum usage fees

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NEW DELHI: In a relief to telcos ahead of spectrum auctions in July, the department of telecom (DoT) has scrapped 3% floor rate on spectrum usage charges (SUC). It also said fresh mobile airwaves sold in auctions will attract no SUC.
The weighted average of rates across all spectrum already assigned to an operator in all access bands, including Broadband Wireless Access spectrum in 2300-2500MHz band acquired in 2010 auction, will attract SUC. “The weighted average is to be derived by the sum of the product of spectrum holdings and applicable SUC rate, divided by total spectrum holding. The weighted average rate should be determined operator-wise for each service area,” DoT said.
Companies welcomed the measure. “We… thank the government for DoT order regarding levy of SUC charges for spectrum in 600MHz, 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz 2500MHz, 3300MHz and 26GHz bands. The order will provide clarity to telecom service providers for upcoming auctions,” S P Kochhar, DG of Cellular Operators Association of India, said.

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