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DoT to approach Cabinet for reduction in spectrum usage charges

Telecom regulator Trai has recommended to charge SUC at uniform rate of 3% across industry

BS Reporter  |  New Delhi 

Idea buys Videocon's spectrum for Rs 3,310 cr

The department of telecommunications (DoT) will soon approach the Cabinet for its nod to reduce spectrum usage charges (SUC) to three per cent from existing five per cent of the adjusted gross revenues earned by telecom companies.

The highest policymaking body of the department, Telecom Commission, in its meeting last week, cleared Trai’s proposal to charge SUC at three per cent on spectrum that will be bought in the next round of auction.

“It will be sent to the Cabinet for final approval and will be applicable to the spectrum bought in the auction this year," a senior ministry official said.

The finance ministry will be involved in the process as the reduction would mean lesser revenue for the government.

The government is expected to conduct the next round of auctions, where the sought after 700 Mhz spectrum will be up for grabs for the first time, around August. However, no official announcement has been made on the dates.

First Published: Tue, April 05 2016. 00:20 IST