Ahead of spectrum auction next week, Vodafone India has demanded that the weighted average approach for spectrum usage charge (SUC) should also be applied to the 3G radiowaves which the company won in 2010.
Besides, it has said that going forward, SUC of 1 per cent should be levied on 2.1 GHz or 3G spectrum as there is virtually no distinction between the services being offered on 2.1 GHz and the Broadband Wireless Access (BWA).
The Empowered Group of Ministers (EGoM) has decided that telecom operators will have to pay the weighted average of their existing SUC, and 5 per cent for new spectrum acquired.
SUC is levied annually as a percentage of revenue from telecom operators. For companies that hold BWA spectrum, Reliance Jio Infocomm Ltd and Tikona, the fee is 1 per cent.
EGoM did not approve the Telecom Regulatory Authority of India's suggestion for a uniform SUC of 3-5 per cent across the board, which would have increased charges for BWA players.
In a letter to Telecom Secretary MF Farooqui Vodafone India said that it has "some reservations on the effectiveness of the revised regime in fully addressing some of the fundamental underlying issues and concerns on the high level of SUC... (It is) earnestly requested that the details of the decision be notified formally as a part of the NIA".
Besides, it has said that going forward, SUC of 1 per cent should be levied on 2.1 GHz or 3G spectrum as there is virtually no distinction between the services being offered on 2.1 GHz and the Broadband Wireless Access (BWA).
The Empowered Group of Ministers (EGoM) has decided that telecom operators will have to pay the weighted average of their existing SUC, and 5 per cent for new spectrum acquired.
SUC is levied annually as a percentage of revenue from telecom operators. For companies that hold BWA spectrum, Reliance Jio Infocomm Ltd and Tikona, the fee is 1 per cent.
EGoM did not approve the Telecom Regulatory Authority of India's suggestion for a uniform SUC of 3-5 per cent across the board, which would have increased charges for BWA players.
In a letter to Telecom Secretary MF Farooqui Vodafone India said that it has "some reservations on the effectiveness of the revised regime in fully addressing some of the fundamental underlying issues and concerns on the high level of SUC... (It is) earnestly requested that the details of the decision be notified formally as a part of the NIA".
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