TC meeting on uniform spectrum usage charges likely next week

The inter-ministerial panel Telecom Commission (TC) is likely to meet again next week to finalise its views on levying a uniform annual fee on spectrum usage across all players in the sector.
The panel discussed the matter in its meeting on January 7 but could not finalise a view. Sources said the matter requires further deliberations.
"The meeting is expected to take place next week to finalise the views," said a Department of Telecom source in the know of the development.
The panel is learnt have worked out 6 SUC scenarios and their probable revenue impact on the exchequer. However, additional options might also be explored for a revenue neutral regime.

The views of TC will be sent to the Empowered Group of Ministers on telecom, headed by Finance Minister P Chidambaram, which will take a call on it.
The EGoM could also determine whether their decision will need a final approval from the Cabinet.

The Telecom Regulatory Authority of India had in September recommended levying a uniform spectrum usage charge (SUC) of 3 per cent of the revenues earned by mobile operators from April 1, 2014 and keeping the upper limit of SUC at 5 per cent.
Levied annually by the government, SUC varies from 3-8 per cent for mobile service providers and 1 per cent for holders of broadband wireless access (BWA) spectrum that can be used for 4G services.

The uniform SUC, if implemented as recommended by Trai, will provide relief to mobile operators such as Airtel, Vodafone and Idea, but will increase rates for BWA spectrum holders including Reliance Jio Infocomm Ltd (RJIL).
While GSM players like Airtel, Vodafone, Idea Cellular and Uninor have been demanding implementation of uniform SUC, RJIL has opposed any such move.
Redoubling its efforts to counter the uniform fee demand, RJIL has written another letter to Telecom Minister Kapil Sibal stating that a flat fee will disturb the level-playing field for incumbent operators and new entrants.