The Ministry of Finance has suggested that the government impose spectrum usage charges (SUC) of 3 per cent on operators, say news reports.
Earlier, the Department of Economic Affairs (DEA) had suggested that operators holding broadband wireless spectrum (BWA) should be charged 1 per cent SUC for the spectrum they currently hold. However such players should be charged a weighted average of 3 per cent and 1 per cent if they win spectrum in the upcoming spectrum auction.
GSM players and BWA licence holders continue to have a divided opinion on this issue. Currently, a SUC of between 3 and 8 per cent is levied annually as a percentage of revenue earned by operators. Earlier, the Telecom Regulatory Authority of India (TRAI) had suggested imposing a uniform SUC of 3 to 5 per cent beginning April 1, 2014 on operators irrespective of the technology being used by them to provide telecom services.
While GSM players have supported TRAI?s move, players holding BWA spectrum have been opposing the regulatory body?s recommendations on the grounds that it will result in higher payout of SUC for them which goes against the guidelines issued for providing BWA licences in 2010. Currently, BWA spectrum holders pay SUC at 1 per cent.
The Telecom Commission of India will take a final decision on the issue on January 25, 2014.
