Ministers allow spectrum usage charge on all spectrum acquired in auction.
New Delhi: In an attempt to boost the forthcoming 2G auction, an empowered group of ministers (EGoM) on Monday allowed a spectrum usage charge (SUC) of five per cent of the annual gross revenue on all the spectrum acquired in auction. This will help old telecom players including Airtel and Vodafone, which have large quantum of spectrum.
The existing telecom operators will have to pay the weighted average of their existing SUC, and five per cent if they acquire new spectrum.
In a relief to Mukesh Ambani’s Reliance Jio Infocomm, SUC for broadband wireless access (BWA) spectrum will continue to remain at one per cent as the government has not amended the existing contractual obligation. Reliance Jio Infocomm, which is the only company to have all India BWA licences had opposed any attempt to increase SUC for it from current one per cent.
However, BWA players will have to pay a SUC of five per cent for the new airwaves they acquire. These companies have to report separately the revenue earned from BWA airwaves and new spectrum.
Trai had recommended a uniform SUC of three to five per cent across sectors including for BWA operators. The eGoM decisions will be sent to cabinet for approval.
“For all new spectrum, which will be sold, it will be five per cent but it will be charged at weighted average. There is no protection of revenue. In this process if government losses some revenue, does not matter. Ultimately consumers have to be benefited,” said telecom minister Kapil Sibal.
The minister said that more investment in the sector means more service and lower tariffs for consumers.
“Ultimately it is consumers who need to benefit. Big players (charges) will come down. It will not affect new players,” added Mr Sibal.
( Source : dc )
Next Story
