Days after the outgoing Telecom Secretary JS Deepak shot off a letter to the Telecom Regulatory Authority of India (TRAI) raising a red flag over the health of the telecom sector, sources told CNBC-TV18 the regulator believes it is unfair to blame promotional offers by Jio for poor health of the sector.
Quoting sources, Prerna Baruah of CNBC-TV18 reports that Trai has likely asked DoT to look for some other weight instead of amount of spectrum as proxy for revenues.
To prevent loss of revenue for the government, telecom operators will pay a minimum amount they are paying as per 2015-16 rates.
Reliance had won spectrum in the 2010 auctions before the government had adopted the new spectrum fee regime for auctions starting 2011. Fee revision is allowed only on auctions post 2011.
Hailing recent initiatives of the government like spectrum harmonisation and reduction of spectrum usage charges (SUC), Vodafone India today termed these as "progressive steps".
The Supreme Court (SC) today dismissed a public interest litigation (PIL) filed against Reliance Jio, the to-be-launched telecom service owned by Reliance Industries.
Analysts hailed the government‘s decision to introduce a new structure for charging spectrum usage fees for telecom companies saying the move would encourage fresh investments in the sector, apart from boosting the upcoming spectrum auctions on February 3.
The government on Monday said it would cap spectrum usage charges at 5 percent for telecom companies for any fresh airwaves it auctions. Here is a guide to understanding the development.
Spectrum 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.
The spectrum usage charge is levied annually as a percentage of revenue earned by telecom companies from telecom services. It varies between 3 to 8 percent.
The views of TC will be sent to the Empowered Group of Ministers on telecom, headed by Finance Minister P Chidambaram, which will take a call on it.
Sinha has pointed out that TRAI has reduced the price of 1 MHz of spectrum pan-India by 37 percent, and the reduction is much steeper for key circles like Mumbai and Delhi at 50 percent.