Telecom Firms To Save Rs 150 Cr For Every 10-bp Dip in SUC

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The three per cent telecom spectrum usage charge (SUC) for the forthcoming auctions will bring down the weighted average rate from the current 5.1 per cent  for telecom companies. According to ICRA estimates, the sector will save annual revenues of Rs 150 crore for every 10 basis points (bps) fall in the usage charge. The new weighted average will be applicable to all bands of spectrum, except broadband wireless access (BWA).

“It is clear that the telecom ministry intends to move towards the SUC of one per cent of the revenue. Telcos have been talking about it for a while and they do not disagree with DoT and Trai’s intent,” said Sanchit Vir Gogia, chief analyst and CEO of Greyhound Research. “What they disagree with is the pace at which it is moving towards that direction. Also, at present, different telcos have different stands on the issue. Hence the need to come together as one so as to make their voice heard.”

Source: Business Standard


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