After several rounds of discussion, the empowered group of ministers (EGoM) has recommended imposing a spectrum usage charge (SUC) of 5 per cent of the annual gross revenue on all new airwaves an operator acquires in the upcoming auction, say news reports. Thereafter, the proposal will be sent to the cabinet for approval.
If this proposal is implemented, telecom operators will be required to pay the weighted average of their existing usage charge and 5 per cent in case they bag new spectrum.
Meanwhile, the government has not amended the existing contractual obligation for broadband wireless access spectrum in terms of SUC. This will continue to be pegged at 1 per cent, but companies will be required to pay a usage charge of 5 per cent for the new airwaves they acquire. Also, these players will have to separate the revenue gained from BWA and new spectrum.
