DoT excludes revenue from wireline services in computing SUC

The WPC Wing of DoT has issued a clarification on Spectrum Usage Charges (SUC) order dated June 21, 2022. The order says, “it is clarified that for calculating the total SUC amount payable with the weighted average method, the actual AGR will be taken after excluding the revenue from wireline services. All other terms and conditions shall remain unchanged.”

Backgrounder
DoT Order dated June 21, 2022

Spectrum Usage Charges (SUC) for spectrum in 600 MHz, 700MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz bands held by the Telecom Service Providers (TSPs)

In exercise of the powers conferred under section 4 of the Indian Telegraph Act, 1885 (Act No. 13 of 1885) and in supersession of earlier Order No. P- 14010/05/2016 dated 12″ August 2016 and L-14010/01/2021-NTG dated 26″ February 2021, the Central Government hereby prescribes the following rates of “Spectrum Usage Charges” for spectrum held by the Telecom Service Providers having License/Authorization to provide “Access Services” in different Access spectrum bands:

• For spectrum acquired through auctions held after 15.09.2021 in different Access spectrum bands, no SUC shall be charged.
• The weighted average of SUC rates across all spectrum assigned to an operator (whether assigned administratively or through auction or through trading) in all Access Spectrum Bands including Broadband Wireless Access spectrum in 2300 MHz/2500 MHz band acquired in 2010 auction shall be applied for charging SUC. The weighted average is to be derived by sum of product of spectrum holdings and applicable SUC rate divided by total spectrum holding. The Weighted Average Rate should be determined operator-wise for each service area.
• For the purpose of calculation of spectrum usage charges, there shall be a minimum/presumptive AGR which shall be not less than 5% of the bid amount. The calculation of spectrum usage charges shall be on the basis of minimum/presumptive AGR or the actual AGR whichever is higher.
• The weighted average rate shall be kept to two decimal points by rounding off the second decimal figure to the next higher digit. The rounding off shall be made to next higher digit at two decimal points even if the third decimal point is less than 5.

CT Bureau