In a relief to telecom service providers, the Department of Telecommunications (DoT) has abolished the minimum rate of 3 per cent on spectrum usage charges.
“For spectrum obtained through auction held after September 15, 2021 in various access spectrum bands, no SUC (spectrum usage fee) shall be charged,” DoT said in an order dated June 21, 2022.
The weighted average of SUC rates across all spectrum assigned to an operator in all access spectrum bands including broadband wireless access spectrum in 2300 MHz/2500 MHz band obtained in 2010 auction will be applied for charging SUC.
“The sum of the product of the weighted average spectrum holdings and the applicable SUC rate, is to be divided by the total spectrum holding. The weighted average rate should be determined operator-wise for each service area, Telecom Deptt said in the order.
Telecom service operators will get relief from the order of the Department of Telecom.
“We welcome and thank the Government and the Minister of Communications for the much awaited DoT order regarding imposition of SUC charges for spectrum in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz. 3300 MHz and 26 GHz bands. This order will give clarity to the telecom service providers for the upcoming auctions. Cellular Operators Association of India (COAI),
For the purpose of computing spectrum usage charges, the DoT said, “there shall be a minimum/estimated AGR which shall not be less than 5 per cent of the bid amount.”
DoT said the spectrum usage charges would be calculated on the basis of minimum/estimated AGR or actual AGR whichever is higher.
Rounding off the second decimal digit to the next higher digit, the weighted average rate will be rounded to two decimal points. The DoT has mentioned in the order that rounding off of two decimal points to the next higher digit will be done even if the third decimal point is less than five.