Bharti Airtel and Vodafone India have written to telecom secretary, MF Farooqui, seeking immediate clarity on the spectrum usage charges (SUC) to be paid by the operators ahead of the forthcoming round of spectrum auction.
Both the players have claimed that the clarity on the issue of SUC is critical for these players to make an informed decision regarding the quantum of spectrum to be bought in the forthcoming spectrum auction.
The next round of spectrum auction is scheduled for February 3, 2014. The latest communication from the two operators comes at a time when the date for withdrawal of applications for the spectrum auction is round the corner. Operators which have submitted their applications for the forthcoming round of spectrum auction have the option of withdrawing the same by January 27, 2014.
In their letters, Bharti Airtel and Vodafone India, have reiterated their demand for levying a flat SUC, irrespective of the quantum of the spectrum held by the operators. Vodafone India has stated that under the current SUC regime, incumbent service providers feel discouraged from buying more spectrum as they will end up paying a higher percentage of SUC.
A majority of the GSM operators, including Bharti Airtel and Vodafone India, have been supporting the Telecom Regulatory Authority of India?s proposal to charge a flat SUC of three per cent for spectrum bought through auctions and an SUC of five per cent for the spectrum acquired through other means. Currently, operators pay an annual SUC between three and eight per cent of their adjusted gross revenue (AGR).
Meanwhile, players holding broadband wireless access (BWA) spectrum have been urging the government to continue with its current system of slab-based SUC. Currently, BWA licence holders such as Reliance Jio Infocomm Limited and Tikona Digital Networks are liable to pay only 1 per cent of their AGR as SUC. Adoption of a flat SUC regime could result in an increased outgo for such players.
