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DoT abolishes 3% floor rate on 5G spectrum usage charges

DoT abolishes 3% floor rate on 5G spectrum usage charges

New Delhi, June 22

In a major relief for telecom companies, the Department of Telecommunications (DoT) has scrapped the 3% floor rate on spectrum usage charges (SUC).

As the government prepares for 5G spectrum allocation next month, telcos were seeking to do away with the SUC floor rate equal to 3% of adjusted gross revenue (AGR) to cut their 5G spectrum payments.

Big relief for telecom operators

  • Telecom companies were demanding abolition of spectrum usage charges (SUC) floor rate, equivalent to 3% of adjusted gross revenue, to cut their 5G spectrum payments.
  • Industry watchers said the DoT did not mention the 3% floor rate in its latest SUC calculation order, which came late on Tuesday, meaning it has been scrapped.

Industry watchers said the DoT did not mention the 3% floor rate in its latest SUC calculation order, which came late on Tuesday, meaning it has been scrapped.

The Cellular Operators Association of India (COAI) welcomed the much-awaited DoT order with regard to levy of SUC charges for spectrum in 600, 700, 800, 900, 1800, 2100, 2300, 2500, 3300 MHz and 26GHz bands.

“The order will provide clarity to the telecom service providers for the upcoming auction,” said Lt Gen Dr SP Kochhar, Director General, COAI. The government is set to start bidding for 5G spectrum by the end of next month.

The Union Cabinet has approved the proposal of the Department of Telecommunications to conduct an auction through which bidders will be assigned spectrum for providing 5G services to the public and enterprises. — IANS

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DoT abolishes 3% floor rate on 5G spectrum usage charges

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