DoT scraps 3% floor rate on 5G spectrum usage charge

New Delhi, June 22

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

As the government prepares for 5G spectrum allotment next month, the telcos had been demanding to scrap the SUC floor rate, equivalent to 3% of adjusted gross revenue (AGR), to cut their 5G spectrum payouts.

Big relief for telecom operators

• The telcos had been demanding to scrap the spectrum usage charge (SUC) floor rate, equivalent to 3% of adjusted gross revenue, to cut their 5G spectrum payouts
• The DoT, in its latest SUC computation order that came out late on Tuesday, did not mention the 3% floor rate, which means it has been scrapped, industry watchers said

The DoT, in its latest SUC computation order that came out late on Tuesday, did not mention the 3% floor rate, which means it has been scrapped, industry watchers said.

The Cellular Operators Association of India (COAI) welcomed the much-awaited DoT order regarding the 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 telecom service providers for the upcoming auctions,” said Lt Gen Dr SP Kochhar, DG, COAI. The government is set to launch 5G spectrum bids at the end of next month.

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