New Delhi: The decision of Empowered Group of Ministers (EGoM) to lower the spectrum usage charge (SUC) would be welcomed by telcos (telecom companies). According to the new structure, SUC will be capped at 5%. This could lead to a lowered call rates.
SUC, which is charged as a percentage of telcos revenue, will be arrived at using a weighted average cost of existing and new spectrum fees. However, spectrum charge for 4G broadband holders (e.g. Reliance Jio) was maintained at existing 1%.
Telcos were earlier charged from 3–8% of their annual revenue as SUC, depending on quantum of spectrum held. While, providers with larger quantum such as Vodafone and Bharti Airtel contended a flat SUC, many providers with lesser quantum favoured existing structure.
It is expected that with revised SUC and clarity on norms pertaining to the auction, bidders are to participate with much more enthusiasm. The spectrum auction will be held on 3 February. The auction is already delayed, earlier to be held in January, as the decision by EGoM was awaited.
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Photo courtesy: My Mobile
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