Re­liance Jio op­poses pro­posal to in­crease spec­trum us­age fee

The Financial Express - - CORPORATES - Fe Bureau

Mum­bai, Dec 30: Re­liance Jio In­fo­comm, the tele­com arm of Re­liance In­dus­tries, on Mon­day, wrote to tele­com com­mis­sion chair­man and DoT sec­re­tary MF Fa­rooqui and other mem­bers of an EGoM, op­pos­ing a hike in spec­trum us­age charge on BWA op­er­a­tors.

The ba­sic op­po­si­tion of Re­liance Jio, which is a BWA op­er­a­tor, is that cur­rently a charge of 1% of its ad­justed gross rev­enue is ap­pli­ca­ble on it as per the bid con­di­tions of 2010. How­ever, the Trai has re­cently rec­om­mended that the SUC be made uni­form and flat for all op­er­a­tors at 3% of their AGR. For op­er­a­tors who have a mix of auc­tioned and al­lo­cated spec­trum the rec­om­mended levy is at 5%. Cur­rently, GSM op­er­a­tors pay an escalating SUC rang­ing from 3-8% and this is seen to be detri­men­tal to the forth­com­ing auc­tions in Fe­bru­ary.

Re­liance Jio has said that an uni­lat­eral in­crease in SUC for broad­band wire­less ac­cess spec­trum is il­le­gal. It has also said that any change in SUC for spec­trum al­ready al­lo­cated will ex­tend un­due ben­e­fit to in­cum­bent op­er­a­tors.

“Im­ple­men­taion of Trai’s rec­om­men­da­tion of uni­form SUC at 3% will only re­sult in windfall gains to ex­ist­ing in­cum­bent op­er­a­tors,” it said.

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