Reliance Jio opposes proposal to increase spectrum usage fee
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.