Telecom Ministry is expected to approach the Cabinet for its nod to reduce spectrum usage charges from existing 5% to 3% of the revenue earned by companies from telecom services.
SUC were earlier linked to quantum of spectrum holding of an operator in range of 3-8% of their adjusted gross revenue.
After evaluating impact on the exchequer, the government, in January, 2014, decided to cap SUC at 5% on spectrum that were to be procured in future auction. The SUC collection was at 4.8% level that time.
Existing telecom operators were asked to pay the weighted average of their existing SUC (on old rate of 3-8%), and 5% if they acquire new spectrum.
The Telecom Regulatory Authority of India has recommended to charge SUC at uniform rate of 3% across the industry.
However, the recommendation faced stiff opposition from Reliance Jio — which holds pan India broadband wireless access spectrum, on which 1% SUC is imposed.
The government had then asked all broadband wireless access (BWA) holders, including Aircel and Airtel, to continue paying 1% on BWA but they were asked to pay 5% of adjusted gross revenue on all spectrum they will purchase in the future.