Wednesday, 26 February 2014

Spectrum Usage Charges

Spectrum Usage Charges (SUC)
The weighted average of Spectrum Usage Charges (SUC) payable by current spectrum holders in 900MHz and 1800 MHz bands is 4.83%. 

Giving this information in written reply to a question in the Lok Sabha today, Shri Kapil Sibal, Minister of Communications and Information Technology, said that as a matter of policy, it is desirable to move to a flat rate, and adoption of weighted average rate would provide a path for such transition.

Accordingly, the following decisions to change the spectrum usage charges have been taken:

• Spectrum usage charge for spectrum acquired through current auction will be charged at 5% of Adjusted Gross Revenue.

• There is no change in the existing slab rate of Spectrum usage charges for the Licensees who do not acquire spectrum through current auction.

• In cases of combination of existing spectrum in 900 MHz and 1800 MHz bands and spectrum acquired through current auction, the weighted average will apply to both the spectrum held by the operator.

Shri Sibal informed the House that applying the above 5% flat rate and the weighted average rate of Spectrum usage charge, it is estimated that the revenue to be realized is comparable at current level. 

The above decisions have been approved after considering the recommendations of Telecom Regulatory Authority of India which was finalized after due consultation process. 

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