5 percent Spectrum Usage Charge for new spectrum approved

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MHzNew Delhi, Jan 27: Telecommunications companies that are all set to bid for spectrum in the upcoming auction Feb 3 can ought to pay 5 % of annual sales as spectrum usage charge (SUC), an empowered group of Ministers (EGoM) set here Mon.

“For all new spectrum, which can be sold, it’ll be 5 % but it’ll be charged at weighted average,” medium Minister Kapil Sibal told news persons once the meeting. the decision can now go to the union cabinet for its final nod.

The SUC for broadband wireless access (BWA) spectrum can still stay at one percent, Sibal said. He added that “ultimately it’s shoppers who need to benefit”.

At a meeting control by the telecom Commission Saturday, 3 choices for SUC — 3 % with weighted average, 5 % with weighted average and continued with this charge — were discussed.

The SUC is levied annually as a percentage of revenue earned  by medium firms, that varies from 3-8 %. The medium regulatory authority of India had earlier advised a uniform 3-5 % fee from April 1 across the telecom services for a successful next round of spectrum auction.

In 2012-13, the government’s revenue collection from SUC was Rs.5,689 crore.

Eight telecom service suppliers have applied to take part in the second generation (2G) spectrum auction due Feb 3.

The companies are Reliance Communications, Reliance Jio, Bharti Airtel, Vodafone, Telewings, Aircel, Tata Teleservices and plan Cellular.

The total spectrum to be placed on auction is 46 MHz in 900 MHz band and 403.2 MHz in 1,800 MHz band.

The government expects to mop up Rs.40,874.50 crore from this spectrum auction.

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