The Department of Telecommunications (DoT) has suggested various alternatives to address the differences between GSM operators and players like Reliance Jio Infocomm Limited (RJIL) regarding the introduction of a flat spectrum usage (SUC) regime.
Under the proposed SUC regime, DoT has suggested that the SUC charges for incumbent mobile operators be reduced from the current eight per cent to three per cent depending upon the quantum of spectrum held by an operator. However, broadband players will be allowed to continue paying the current rate of 1 per cent as SUC charges in order to address the concerns raised by RJIL. However, if broadband operators acquire any additional spectrum then they too will have to pay SUC charges of three per cent. Among other options, DoT has suggested imposing a flat SUC of five per cent on operators, irrespective of the kind of licences they hold.
DoT has submitted these proposals to the Telecom Commission which will take a final decision on the matter. Currently, the government levies SUC rates between three and eight per cent of the revenue earned by the operators, depending on the quantum of spectrum held by them. Earlier, the Telecom Regulatory Authority of India (TRAI) had suggested that the operators be asked to pay a flat SUC of three per cent of their total revenues if the players have obtained spectrum by participating in a spectrum auction. However, the operators who have received spectrum by paying the price set by the government should be charged a flat SUC of five per cent. GSM operators have backed TRAI?s recommendations and requested the government to implement a flat SUC regime. The operators have further suggested that in case the government cannot introduce a flat SUC immediately, it should levy a uniform SUC on all technologies. For example, long term evolution (4G) technology deployment across any spectrum band should attract the current SUC of 1 per cent.
However, RJIL has been opposing the government?s move to introduce a flat SUC regime on the grounds that any move to change the fee structure for bandwidth already allocated or auctioned will be illegal. RJIL has claimed that any retrospective change in SUC rates will only result in windfall gains to existing incumbent operators and loss of revenue to the government.
