DoT issues new order to enable telcos to reduce spectrum usage charges on buying radiowaves
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The Department of Telecom (DoT) has issued a new order that will enable telecommunication operator (telcos) to reduce spectrum usage charges proportionately on buying fresh radiowaves in the upcoming 5G auction. The DoT, in the order dated June 21, has removed spectrum usage charge (SUC) from the radiowaves that will be bought in the auction scheduled to start from July 26.
The government will, next month, auction about Rs 4.3 lakh crore worth of airwaves capable of offering fifth-generation or 5G telecom services including ultra-high-speed internet. The DoT collects SUC from a company based on a weighted average method, where charges applicable for each auction and spectrum acquired is taken into account and the sum is divided by the total spectrum acquired by it in various auctions.
The order notifies a new formula which makes the SUC rate nil for the upcoming auction. Till the previous auction, telecom operators were required to pay SUC based on 3 per cent of the amount at which they purchased the spectrum. The Cabinet in September 2021 had approved removal of SUC from future auctions.
