Cabinet approves 5 pc usage charge on new airwaves

The Union Cabinet has approved charging telecom firms 5 per cent of their revenue as spectrum usage charge (SUC) for new airwaves that will be auctioned next month.

The Cabinet, in its meeting on Thursday, also decided that the companies that do not bid in the auction will continue to be charged at existing rates varying from 3 to 8 per cent.

“The spectrum acquired in the current auction will be charged at 5 per cent of the AGR (Adjusted Gross Revenue). In cases of combination of existing spectrum in this band and spectrum acquired through the auction, the weighted average will apply to the entire spectrum held by the operator in 900 MHz and 1800 MHz band,” a government statement said.