Telecom companies raise issue of spectrum usage charge at pre-bid meet

NEW DELHI: Telecom companies today demanded that DoT clarify the issue of annual fee on spectrum, which will impact finances of operators, saying the matter is crucial for success of 2G auction next month.

The spectrum usage charge, which varies between 3-8 per cent of adjusted gross revenue in case of mobile operators, is levied by government.

Regulator TRAI had recommended a spectrum usage charge at a uniform level of 3 per cent of adjusted gross revenue.

This suggestion, if implemented, will raise the level of charges paid wireless broadband spectrum holders like Reliance Jio Infocomm, Augere and Tikona as they are charged only 1 per cent as of now.

"Failure of the DoT to clarify if they will be able to take a decision on implementation of a flat SUC (spectrum usage charges), either before the date of issuing clarification on NIA or the auction date, will be near fatal to the success of the upcoming auctions," industry body COAI's Director General Rajan S Mathews said after pre-bid conference attended by operators keen on spectrum auction.

He said if the government continues with existing level of spectrum usage charge then companies will hesitate in participating in auction as by acquisition of additional spectrum SUC charges will go up from 3 to 6 per cent and from 6 to 8 per cent in many cases.

In the conference, the Department of Telecom (DoT) representatives, led Annie Moraes, answered queries on rules of auction.

DoT noted down various points raised by companies on subjects like network roll-out conditions in case a company moves to new technology, liberalisation of spectrum, definition of a new entrant, fund raising guidelines.

Doubts will be clarified by December 28, DoT said. The last date for companies to seek clarification from DoT on rules of auction is December 24.