Cabinet green-lights 5% SUC

31 Jan 2014

India’s cabinet has approved proposals to levy a spectrum usage charge (SUC) of 5% of annual revenues on 2G frequencies bought at the upcoming auction, the Economic Times writes. The decision clears the way for the government to launch the spectrum tender on 3 February and puts paid to speculation that there would be further delays to the sale, which will feature 403 units of 1800MHz spectrum and 46 units of 900MHz frequencies. As previously noted by CommsUpdate, eight operators have been cleared to participate in the auction, including 4G startup Reliance Jio Infocomm, which is looking to purchase additional frequencies to augment its existing broadband wireless access (BWA) spectrum with a view to rolling out wireless voice services. Meanwhile, Vodafone and Bharti Airtel will need to purchase 900MHz spectrum in the three metro circles, Delhi, Mumbai and Kolkata to continue their operations there as their concessions for those circles are due to expire in November this year.

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