Govt likely to waive off spectrum usage fee for telcos, says report

The government is set to waive off spectrum usage charges (SUC) on airwaves bought by telecom companies through auctions before September 2021, the Times of India reported citing people familiar with the matter. This is set to give a major relief in the tune of several thousands of crores of rupees to major telcos.

Companies like Vodafone Idea, Reliance Jio and Airtel will likely receive a major boost if the fee is waived off, as they will be able to conserve cash while expanding their 5G services and boost the telecom network, TOI cited an official source as saying.

Notably, the Department of Telecom (DoT) in June 2022 had issued an order to remove the spectrum usage charge for radiowaves bought via auctions from September 2021 onwards. However, the said fee is still applicable for radiowaves bought before September 2021.

The government feels that it has already generated the best prices for airwaves through the competitive and often 'aggressive' bidding process of auction, and hence there was no need to tax the companies more for the spectrum, the report further said. It added that the matter has already been discussed with the DoT and the waiver may be announced soon.