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Telecom Comm to discuss spectrum usage charge on Dec 31

The spectrum usage charge, which is levied annually by government as percentage of revenue earned by telecom companies from telecom services, varies between 3 to 8 per cent in case of mobile operators.

December 27, 2013 / 08:55 IST

Inter-ministerial panel Telecom Commission is scheduled to meet on December 31 to discuss the annual fee that telecom operators are required to pay on spectrum held by them. "Telecom Commission will meet on December 31 to discuss spectrum usage charge," a DoT official said.

The spectrum usage charge, which is levied annually by government as percentage of revenue earned by telecom companies from telecom services, varies between 3 to 8 per cent in case of mobile operators.

Also read: Telcos' profit growth to double in 2 years: CRISIL

This annual fee is currently 1 per cent for firms broadband wireless spectrum including Reliance Jio Infocomm Ltd (RJIL) and Tikona. TRAI has recommended bringing this fee to a uniform level of 3 per cent of Adjusted Gross Revenue (AGR).

The view taken by the Telecom Commission will be placed before the Empowered Group of Ministers (EGoM) on telecom, headed by Finance Minister P Chidambaram which will decide on the spectrum usage charge.It will be for the EGoM to move the Cabinet for a final decision on the SUC, sources said.

 Mukesh Ambani led RJIL has opposed Trai's recommendation while GSM industry body COAI has been supporting suggestion of telecom regulator.

first published: Dec 26, 2013 07:59 pm

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