Telecom panel suggests new SUC rates

Telecom Commission, which is the highest decision making body in the telecom department on Monday recommended three per cent annual usage charge for the spectrum to be sold in upcoming auction and fixed the same as the minimum rate even for existing airwaves with all operators. It could hit telecom players who are paying less than 3 per cent spectrum usage charge (SUC).

Telecom Commission's recommendation will now be taken by the Union Cabinet.

The upcoming spectrum is expected to start in 45-50 days from the date the Cabinet approves the proposal.

“We have to maintain level-playing field and then move towards uniform SUC rate for all airwaves which Trai has been suggesting. The recommendation made by Telecom Commission earlier will stay. A new point has been added that all telecom operators will have to pay a minimum 3 per cent SUC,” said an official.

Earlier, it had recommended a spectrum usage charge of 3 per cent for airwaves to be sold in future auctions. It had also suggested that players will continue to pay weighted average of fee for existing airwaves.

But the Cabinet had asked it to take Trai view on the issue after some legal point was raised by some section.

With the Telecom Commission suggesting the floor SUC rate, Reliance Jio is expected to pay fee at the rate of 3.05 per cent, Aircel at 3 per cent while no change for Airtel.