Govt unlikely to implement uniform spectrum charge of 3%

The Department of Telecom is close to reaching a mid-way on the contentious issue of annual spectrum charges which might see it neither implementing the uniform level of 3 per cent as recommended by regulator Trai nor maintaining it at the current upper limit of 8 per cent.

"We have discussed it (solution) with industry players and they seem to be satisfied with it. It is very unlikely that we will lower it to 3 per cent but it is also not going to be at 8 per cent," a government source told PTI.

Also read: Cabinet clears Rs 11,258 cr refund for BSNL, MTNL spectrumSpectrum Usage Charge (SUC), a bone of contention between leading GSM players and Mukesh Ambani led Reliance Jio Infocomm (RJIL), is levied annually as a percentage of revenue earned by telecom companies. It varies from 3-8 per cent.

GSM industry body Cellular Operators Association of India has demanded that the government implement Telecom Regulatory Authority of India's (Trai's) suggestion for a uniform SUC – 3 to 5 per cent - from April 1, across the telecom services sector for the success of the next round of spectrum auction scheduled to start from February 3.

If Trai's recommendations are accepted by the government then it will burden firms holding broadband wireless access spectrum, including RJIL that at present pays 1 per cent SUC, it added.

On the other hand RJIL and Videocon Telecom have opposed any change in existing SUC regime, specially airwaves that have been already allocated.

RJIL has also said that recommendation of Trai will not stand scrutiny of law and will also disturb level playing field in the industry.