Trai proposes flat levy for spectrum usage charge

Follow Us

The Indian telecom regulator has proposed a flat levy for spectrum usage charge, its own weighted average formula to calculate the annual spectrum usage charge (SUC), to replace the existing formula used by the telecom department.

tower-india




"While the optimal solution in the view of the Authority is to move to a flat rate regime, we are constrained to limit ourselves to examine the weighted average solution as suggested by Ld. AG and proposed by DoT (telecom department)," the telecom regulator said in a statement.

The new weighted average formula to calculate the annual spectrum usage charge (SUC) takes into account the 'bid values' of each bandwidth to the existing weights. Trai said that the sole quantity of airwaves is not a sufficient weight and revenue arising out of each bandwidth should also be taken into account. However, since revenue segregation cannot be done, the bid amount paid by an operator was indicative of the revenue expected from that bandwidth.

"As bid values are a reflection of how the TSP (telecom service provider) values the band, taking into account market determined price based on bid values might lead to a result that more closely approximates the result, were it possible to segregate revenues as envisaged by the NIA (notice inviting applications)," the Trai has said.

The GSM industry body COAI has welcomed the Trai’s proposal and said that the government should move to a flat levy for spectrum usage charge.

"We believe this should move to the flat 1 per cent previously recommended by Trai,” COAI Director General Rajan S Mathews said, adding that the Cabinet and the Telecom Commission are not so constrained and should move to what Trai sees as the appropriate SUC regime, which is a flat SUC rate, and not a weighted average approach.

The Cabinet last month approved rules for mega-spectrum auction in which airwaves worth Rs 5.66 lakh crore will be put up for sale except SUC as recommended by inter-ministerial panel Telecom Commission.
The Cabinet had asked the telecom ministry to seek Trai's view on SUC before it approves the rule.

Recent Comments

Faraz :

Yes happens in Android also. But for few devices VoNR has become stable after few updates. Most of us to…

Airtel Partners With Indian Army to Connect Villages Along LOC…

Faraz :

No.. Parliament panel is wrong.. Now that everything is successfully tested and rollout started.. BSNL should just focus in achieving…

BSNL Should Take Help of Foreign Players till Indigenous Tech…

jaganathsamal :

Even when the toggle is on, calls fallback on VoLTE. You can check at the status bar on top which…

Airtel Partners With Indian Army to Connect Villages Along LOC…

ved :

I see Voice over 5G Standalone in toggled on.

Airtel Partners With Indian Army to Connect Villages Along LOC…

TheAndroidFreak :

Off Topic : 8s Elite will compete with Dimensity 9350. Dimensity has gone mad. According to me,there was no need…

OnePlus 13 and Xiaomi 15 to Feature Qualcomm Snapdragon 8…

Load More
Subscribe
Notify of
2 Comments
newest
oldest most voted
Inline Feedbacks
View all comments