Bharti Airtel and Reliance Jio have recently received a positive ruling from the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). The DoT (Department of Telecommunications) had been seeking to levy additional 0.5% SUC (Spectrum Usage Charge) on the whole bandwidth holding of operators sharing their airwaves. The telcos wanted this to be applicable only on the spectrum that was being shared with the other operators, and not the entire bandwidth holding.
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TDSAT, according to an ET report, has quashed this order from DoT. This means that Airtel and Jio won't need to pay additional 0.5% SUC on their entire holdings. Reliance Jio and Bharti Airtel had been asked by DoT to pay Rs 1,600 crore and Rs 300 crore for this, respectively.
The demand from DoT has been quashed, meaning lesser payments for Airtel and Jio. This will help the companies with improving their cashflows, which are getting healthier by the day due to tariff hikes.
