COAI for uniform spectrum usage rate

Recently, Mukesh Ambani-led Reliance Jio Infocomm opposed Trai's idea of uniform SUC of 3% of AGR

The Cellular Operators Association of India on Tuesday said the suggestion of the Telecom Regulatory Authority of India to follow a uniform spectrum usage charge of three per cent of adjusted gross revenue of the operators would create a level-playing field for all the operators in the country.

The association, which lobbies for incumbent GSM operators like Bharti Airtel, Vodafone and Idea Cellular, has pointed out that the charges should be “non-discriminatory and uniform” for all operators providing the same kind of services. Any distinction thereon, would be discriminatory and cannot be allowed as it would grossly affect the level playing field, it said in a statement.

“Licensees cannot pick and choose parts of a policy to suit their own business needs. Since, the Notice Inviting Application (NIA) condition of scope of service of a license has been changed by payment of a certain amount for Reliance Jio Infocomm, it cannot be held by them that the government now cannot change the condition of one per cent flat SUC given in the NIA to flat three per cent SUC as recommended by TRAI. This clearly shows that they are trying to follow selective rules from the NIA as well as the new policy to suit their own requirements,” said Rajan S Mathews, Director General, COAI..

Recently, Mukesh Ambani-led Reliance Jio Infocomm has opposed Trai’s recommendation of uniform SUC of 3% of AGR, stating that the proposal is against the rules specified at the time of auctioning broadband spectrum in 2010.

Trai has recommended the three% spectrum usage chares for the BWA spectrum holders considering the recent decision of the Government to allow BWA spectrum holders to offer voice services using the spectrum they currently hold.

On the other hand, the existing voice service operators pay 8% as spectrum usage charge.

COAI further stated that the Department of Telecommunications (DoT) should apply the uniform SUC for all types of spectrum holders for the purpose of voice and data services to ensure a level playing field in the industry.