Govt to Waive Spectrum Usage Charges for Pre-2021 Auctions: Report

The government is set to waive Spectrum Usage Charge (SUC) for airwaves acquired through auctions before September 2021, providing telecom operators with relief worth thousands of crores. The decision is expected to help Vodafone Idea, Bharti Airtel, and Reliance Jio conserve cash as they expand 5G services and strengthen their networks, an official source told The Times of India.

• Make Telecom Talk My Trusted Source
• 
• 

Also Read: Vodafone Idea Says It Can’t Furnish Rs 6,051 Crore BG: Report

In June 2022, the government decided to eliminate the SUC for bandwidth auctioned after September 15, 2021, across various frequencies. However, no decision was made regarding the spectrum acquired in auctions before this period, according to the report.

“The move to waive off SUC for spectrum bought through auctions before 2022 is likely to be approved soon. The plan is to give relief to the telecom companies so that their network expansion work continues strongly,” the report quoted a source as saying.

Relief Amid Financial Stress

Currently, telecom operators pay SUC at 3–4 percent of their adjusted gross revenue (AGR), along with an 8 percent license fee, which includes a 5 percent contribution to the Universal Service Obligation Fund (USOF).

Officials felt that a competitive bidding process, which went aggressive on many occasions, had already helped the exchequer get the best prices for airwaves and thus there was no need to tax companies more for spectrum.

“The matter has already been discussed within DoT and relevant ministries and an announcement on the waiver can come soon,” the source reportedly said.