Vodafone acknowledges Government’s new telecom reforms

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In a statement released by the company, Vodafone India expressed its gratitude and happiness in Government’s recent initiatives to harmonize spectrum in selected bands and to reduce the subscriber usage charges (SUC).


Mr. Sunil Sood, MD & CEO, Vodafone India said that the harmonization of the available spectrum to offer additional quantum via auction will maximize the efficiency of the resource. “With Digital India as the guiding vision and consumer demands evolving from voice to data, the telecom industry increasingly needs more of quality spectrum to be made available at reasonable prices. An efficient spectrum also directly results in providing customers with a superior network experience,” he said.

The initiative to reduce SUC from 5% to 3% of adjusted gross revenues (AGR) brings in much-needed relief to the highly capital intensive telecom sector.

He also said that the reduction in SUC charges from 5% to 3% will free cash-flows and the operators can invest more towards network enhancements and customer experience. “The telecom sector is severely debt-laden (more than Rs. 3 lakh crore at last count and growing). This reduction in SUC charges from 5% to 3% will free cash-flows which can be invested towards further enhancing network and customer experience. It is a positive step that benefits the industry and is also in line with the TRAI’s recommendation of having a uniform, minimal SUC charge for all spectrum across the industry,” he said.

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