Telecom minister Kapil Sibal on Wednesday said that the India government is likely to approve lower spectrum usage charges for mobile service providers such as Vodafone, Bharti Airtel, Idea Cellular, Reliance Communications, etc.
Times of India reported that this move will reduce mobile bills.
The government, which is set to conduct spectrum auction in January 2014 targeting to mobilize around Rs 30,000 crore to Rs 40,000 crore, is also planning to look at a lenient penalty regime for minor offences. Several telecoms are concerned about penalties imposed by the Department of Telecommunications (DoT).
The Empowered Group of Ministers (EGoM) on telecom will discuss the SUC charges in their next meeting. If the decision makers decide to lower spectrum usage charges, SUC will come down to a uniform rate of 3 percent of revenues from the present 3-8 percent. The EGoM, headed by finance minister P Chidambaram, will meet on 2 December.
Vodafone earlier demanded for a fixed SUC that will also be helpful in making telecom operators bid aggressively during the upcoming spectrum auctions.
The government proposes to come out with a three-layered structure that aims at having lower penalties for minor offences like procedural lapses. The government expects that an industry-friendly regime before the auctions will make the next round of airwave sale more attractive, considering that the previous two rounds did not see much action.
Telecom operators such as Bharti Airtel, Vodafone India and Idea Cellular are facing penalty for violating 3G roaming rules. Hope the government will not support erring telecoms which are posing challenge to the nation’s economy.
Also, there are probes against Reliance Communications and other telecoms for showing lower revenues to escape from paying to the government.
