Indian telecoms urge uniform spectrum usage charge

Dollar2
The telecom industry stakeholders have written to the sector regulator on Thursday requesting uniform spectrum usage charge (SUC) rate for all operators across bands and technologies.

“…it is requested that there is an urgent need to reduce the SUC rate for all existing spectrum assigned to the operators to a low and a uniform rate across bands and technologies,” said a letter written by Rajan S Mathews, director general, Cellular Operators’ Association of India (COAI) to the Telecom Regulatory Authority of India (TRAI) chairman RS Sharma.

The telecom industry body was welcomed the recent government proposal to reduce SUC rate from 5 percent to 3 percent.

The COAI said the high SUC burden on operators adversely impact the investment in infrastructure, and said that a uniform rate of SUC will simplify the calculations and remove all arbitrages and ambiguities.

The COAI urged the government to charge SUC at a uniform rate of 3 percent for all the spectrum. “Further, reduce the SUC rate in a phased manner to a uniform rate of 1 percent,” the letter stated.

The letter stated that industry’s payout for SUC has increased at a compound annual growth rate (CAGR) of 15.22 percent from Rs 3,602 crore to Rs 7,316 crore from 2010 to 2015. At present, the industry is under the debt of around Rs 3.5 lakh crore, said COAI.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

More like this
Related

Optus Q3 FY26 Results: Mobile Growth, Network Resilience and Leadership Changes Drive Momentum

Optus delivered improved financial performance and operational progress in...

Singtel Q3 FY26 Results: AI, Digital Infrastructure and Airtel Gains Drive Profit Growth

Singtel Group has reported its business update for the...

TRAI revamps DND and MySpeed apps to fight spam and boost real-time network performance

The Telecom Regulatory Authority of India has launched revamped...

TRAI cracks down on spam in 2025 with over 7 lakh notices and 21 lakh telecom disconnections

Telecom Regulatory Authority of India has significantly intensified its...