DoT notifies revised SUC order for spectrum held by TSPs across different spectrum bands

The Department of Telecommunications (DoT) yesterday notified the revised rates of spectrum usage charges (SUC) for spectrum held by telecom service providers (TSPs) across different spectrum bands in supersession of the earlier notified SUC dated 12th August 2016 and 26th February 2021.

DoT’s revised SUC order notes that the spectrum acquired through auctions held after 15th September 2021 in different spectrum bands won’t be attracting SUC. The weighted average of SUC rates across all spectrums assigned to an operator in all spectrum bands including the BWA spectrum in the 2300 MHz/2500 MHz band acquired in the 2010 auction shall be applied for charging SUC.

The revised SUC order has dropped the mention of the weighted average of SUC rates being subject to a minimum of 3% of AGR excluding revenues from wireline services.

The weighted average rate will be derived by the sum of the product of spectrum holdings and the applicable SUC rate divided by total spectrum holding. The weighted average rate will be determined operator-wise for each service area.

The weighted average rate will be kept to two decimal points by rounding off the second decimal figure to the next higher digit. The rounding off shall be made to the next higher digit at two decimal points even if the third decimal point is less than 5.

There will be a minimum/presumptive AGR not less than 5% of the bid amount for the purpose of calculation of spectrum usage charges. The calculation of spectrum usage charges shall be on the basis of minimum/presumptive AGR or the actual AGR whichever is higher.