New Delhi: Sector regulator Trai on Friday sought public feedback on levying spectrum usage charges linked to annual revenues for Internet service providers, something similar to the norms for mobile companies.
The move could potentially push up broadband costs for consumers as ISPs currently pay “formula-based spectrum charges”. Trai, in a consultation paper, said service providers with Cellular Mobile Telephone Services and Unified Access Service Licence are assigned spectrum through market-based mechanism.
They pay spectrum usage charge (SUC) on the basis of percentage of their gross revenue called AGR. “However, there are certain categories of telecom/broadcast licensees to whom spectrum is assigned administratively and SUC is based on a formula basis. ISPs are among such licensees... present criterion of spectrum allocation to ISPs is city-wise basis, subject to the availability of spectrum,” the regulator said.
The discussion paper has sought views on whether there is “a need to introduce SUC based on percentage of AGR for ISPs or should the existing formula based spectrum charges continue”.
Companies offering Internet services include names like Tikona, Airtel, RCom and Tata. ISP Association of India (ISPAI) President Rajesh Chharia said that the current practice of “administrative allocation” of airwaves is within reach of small ISPs, which use spectrum for enhancing rural connectivity.
