wordpress blog stats
Connect with us

Hi, what are you looking for?

Vodafone Seeks 1% Uniform Spectrum Usage Charges For 3G & BWA Spectrum

Our coverage of the 2G Auctions is brought to you by OnMobile Global, India’s leading Mobile Value Added Services [VAS] company

Vodafone India has sent a letter to the Department of Telecom (DoT) and Ministry of Communication and Information Technology, seeking a level playing ground between 3G players and BWA players since it believes that there is now no distinction between services that will be offered on 3G and BWA network. It has also sought clarity on the implementation of EGoM’s decision to reduce spectrum usage charges earlier this week.

Cricket

The telco has asked that going forward, the government should apply a standard spectrum usage charge (SUC) of 1% Annual Gross Revenue (AGR) for for both 2.1GHz/3G and Broadband Wireless Access (BWA) spectrums with a weighted average for existing spectrum allocations in 900 MHz and 1800MHz band. Vodafone also pointed out that TRAI had earlier recommended this step and says such a move will enable faster rollout and proliferation of mobile broadband.

Note that empowered group of ministers (EGoM) had earlier retained 1% SUC for BWA players, although it mentioned that players will have to pay a 5% usage charge for the new spectrum acquired during the spectrum auction next week. Following this, Cellular Operators’ Association of India (COAI) Director-General Rajan Mathews had raised concerns of an unlevel playing field, saying that 4G players should also pay the same usage charge as GSM operators, especially now that players like Reliance Jio has received pan-India unified license through which it can offer voice services to its consumers.

Other Issues Raised by Vodafone: 

Advertisement. Scroll to continue reading.

Weighted Average for Existing Allocations? Vodafone has asked for a confirmation on whether the weighted average approach will be applied to existing allocations from the date of allocation, if it acquires additional spectrum in the forthcoming auctions. For instance, if it acquires additional 5MHz 1800MHz spectrum in Delhi where it already has 10MHz 900/1800MHz spectrum (and paying 6% SUC), this weighted approach would mean it would have to pay a weighted SUC of 5.7% AGR.

Applicable on 3G Spectrum bought in 2010? Vodafone has sought a confirmation on whether this weighted approach will be applicable to the 3G spectrum acquired in 2010 from the date of its allocation. The company believes the government should apply this approach from the date of allocation since it was also considered by an Inter-Ministerial Committee in 2008, when 3G spectrum usage charge issue was being discussed.

Change in SUC rate during extension time? Vodafone has also sought confirmation on whether the existing allocations in 1800 MHz spectrum acquired in November 2012 auction will be removed from the earlier slab during the extension time, which will result in a change in applicable SUC rate since spectrum acquired or re-assigned post 2010 attracts SUC at 5% of AGR.  If confirmed, this is expected to benefit telcos since the spectrum usage charge will drop significantly.

Finally, Vodafone has sought formal notification of the revised SUC and clarity on the topics above to be included in the NIA (notice inviting applications) prior to the auctions scheduled for Monday (February 3).

Our 2G Auctions 2014 coverage

5% Spectrum Usage Fee For New Spectrum in 2014 2G Auctions Pre-Qualified Bidders
2014 2G Auctions: 8 Telcos Submit Bids; Videocon, Loop & SSTL Not Participating
DoT Modifies 2014 2G Auction Guidelines: Rollout Obligations, Performance Guarantees
India’s 2014 2G Auction Postponed: To Begin On 3rd February 2014
The Lowdown: DoT’s Guidelines For 2G Spectrum Auction In January 2014

Advertisement. Scroll to continue reading.

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

News

By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

News

By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

You May Also Like

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ