Recommendations

Introduce a flat SUC (Spectrum Usage Charge) of a nominal 1%, now that most of the spectrum has been acquired through market related auction process. Define “Adjusted Gross Revenue” which is subject to government levies, to include only mobile telecom related income. Treat license fee & spectrum usage charges on same lines as service tax, thereby allowing set off. Availability of commercial debt, as the banking sector has reached its sectoral limits: Telecom Finance Corporation needs to be established. Reduce the USO Fund levy, of 5% gradually to 1% as operators meet the revised roll out obligations which now covers the rural areas. Failure to do so is tantamount to a “double levy” on operators as they increasingly provide coverage in the rural areas.