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Telecom Commission sets SUC at 3% of revenue; Reliance Jio, Aircel may have to pay more

The Telecom Commission on Monday fixed the weighted average spectrum usage charge (SUC) at a minimum of 3 per cent of revenue, raising the user charge for Reliance Jio Infocomm and Maxis-controlled Aircel, while shooting down the formula proposed by the telecom regulator earlier this month .
“The commission has stuck to its previous recommendation but it has introduced one more element, which is maintaining a floor rate for SUC at 3 per cent,” a senior official at the department of telecom (DoT) told ET after the TC’s decision
The Telecom Commission’s proposals will be considered by the Cabinet next week. The next round of airwaves auctions, which have been held up over the SUC issue, can take place 45 days after the Cabinet gives its approval.

Reliance Jio, which according to the earlier formula proposed by the Telecom Commission, was to have an SUC outgo of 2.88 per cent of revenue, will now have to pay 3.05 per cent, according to the DoT sources. This fee will be the weighted average for Jio while the telco will continue to pay 1 per cent SUC on the spectrum it won in 2010 auction.

Incumbent GSM operators such as Airtel BSE 0.85 %, Vodafone and Idea, which pay a higher SUC, wanted a flat revenue share rate across all airwave bands and operators.

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