New Delhi: Telecom Regulatory Authority of India has agreed to slash spectrum usage charges from 5% to 3%. This could lower consumer tariffs for calls and broadband while also freeing up cash for debt laden service operators.
Telecom Ministry is expected to approach the Cabinet for its nod to reduce the spectrum usage charges from the existing 5% to 3% of the revenue earned by companies from telecom services.
“The Telecom Commission has agreed to charge spectrum usage charges (SUC) at 3% level of adjusted gross revenue on spectrum that will be purchased in next round of auction. It will be sent to the Cabinet for final approval,” an official source told PTI.
The Telecom Regulatory Authority of India has recommended charging SUC at uniform rate of 3% across the industry.
Spectrum usage charges were earlier linked to the quantum of spectrum holding of an operator in the range of 3-8% of their adjusted gross revenue.