The Indian government is reportedly planning to waive spectrum usage charges (SUC) for airwaves acquired through auctions before September 2021.
In June 2022, the government abolished the SUC for airwaves allocated through auctions after September 15, 2021, but had not decided on spectrum acquired in earlier sales. Now, the exemption is likely to be extended to pre-2021 spectrum as well.
Authorities contend that competitive bidding in past auctions had already ensured fair valuation, making additional levies through SUC redundant. At present, telecom providers pay an SUC of 3-4 per cent on their adjusted gross revenue (AGR) along with an 8 per cent licensing fee, which includes a 5 per cent contribution to the Universal Service Obligation Fund (USOF).
