Videocon wants limited spectrum usage charges

Trai has recommended levying of uniform SUC 3-5% from April 1, 2014 across the sector

Videocon Telecom today said that the government should levy spectrum usage charges which cover only administrative charges.

According to the company, spectrum was allocated administratively in the earlier regime where there was no payment made for spectrum allocation by any operator. “Hence, there was a logic behind charging slab based spectrum usage charges in accordance to amount of spectrum allocated,” Videocon said, in a press release.

The current regime where spectrum is auctioned, it is fair that SUC charges should levied only to the extent to cover the administrative expenses towards the management of the spectrum, the company recommended to the telecom commission.

The telecom regulator recommended spectrum usage charges at three per cent to five per cent of revenue earned by mobile operators from telecom services from April 1, 2014. These charges will be favorable to the incumbents like Bharti Airtel, Vodafone India and Idea Cellular, the company feels.

“The new policy recommendation is only beneficial to bigger operators as a flat spectrum usage charge will bring them huge monetary savings on the spectrum administratively obtained in the earlier regime.Any policy should promote level playing field for all, and we recommend lower SUC for new players to ensure level playing field for all and hence greater choice to customers,” said Arvind Bali,chief executive officer of Videocon Telecom.

Videocon lost 21 of its licences as Supreme Court quashed 122 licences in early 2012. In the auction conducted in 2012, the company bought back six licences for Rs 2,222 crore.