COAI Urges Slashing of Spectrum Usage Charges......

Although the government has decided to reduce spectrum utilization expenses (SUC) to three percent of adjusted gross sales from 5 percent made by telecom groups, the industry stakeholders on Tuesday advised the branch of Telecommunications to similarly reduce it to one percentage.

"We request that to start with SUC at a uniform price of 3 percent be made relevant for all spectrum, which may be similarly reduced to 1 percent in a phased way," the cell Operators' association of India (COAI) said in a letter to Telecom Secretary J.S. Deepak on Tuesday. a duplicate of the letter is to be had with IANS.

The letter was written through COAI director preferred Rajan S. Mathews.

In a separate statement, Vodafone India stated the authorities's plan to reduce SUC from five to 3 percent of AGR will deliver in much wished remedy to the quite capital in depth telecom region.

"The telecom area is seriously debt weighted down (greater than Rs. three lakh crores at remaining count number and growing). This reduction in SUC fees from 5 to 3 percentage will free coins-flows which can be invested in the direction of in addition improving network and patron experience," stated Sunil Sood, dealing with director and CEO, Vodafone India.

"it's far a fantastic step that advantages the enterprise and is also in step with the Trai's (Telecom Regulatory Authority of India) advice of getting a uniform, minimal SUC price for all spectrum across the enterprise," he brought.

The industry body - COAI - additionally entreated for uniform SUC regime as it said the multiplicity of SUC charges results in ambiguities whilst getting into merger and acquisitions and spectrum buying and selling and sharing transactions.

"A uniform SUC will simplify the calculations and do away with all arbitrages and ambiguities," the letter stated..