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Videocon Wants Uniform Spectrum Charges & Only To Cover Admin Expenses

Videocon Telecom has said that it wants spectrum usage charges in India to be uniform, applicable only on spectrum procured through auction, and that to, for only covering administative expenses, similar to the existing Broadband Wireless Access license terms. The telco is of the opinion that in the earlier regime, "spectrum was allocated administratively where there was no payment made for spectrum allocation by any operator, hence there was a logic behind charging slab based SUC in accordance to amount of spectrum allocated. In the current regime, however, spectrum is allocated through an open market mechanism to derive the exact market value of the spectrum. Therefore it is fair that SUC charges should levied only to the extent to cover the administrative expenses towards the management of the spectrum." At present, charges are levied according to the amount of airwaves held by the operators, and are charged between 3% to 8% basis the spectrum allocation. Thus, incumbent operators who hold a large amount of spectrum pay SUC at the upper end of the range. This statement from Videocon Telecom has come in just before the TRAI's recommendations on levying of an uniform annual fee on spectrum usage are to examined by the Telecom Commission. TRAI had recommended uniform spectrum usage charge (SUC) of 3% to 5% of revenue earned by mobile operators from telecom services from April 1, 2014. Videocon's licenses had been canceled following the Supreme Court ruling on India's 2G scam, and the allocation of licenses on a…

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Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

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