Relief for telcos, TRAI bats for restricting incremental 0.5% SUC only to specturm being shared

The Telecom Regulatory Authority of India (TRAI) has backed telecom operators' demand for restricting the incremental 0.5 percent Spectrum Usage Charge (SUC) to only the spectrum bands being shared. The move has come as a relief for telcos, who had been pushing the Department of Telecommunications (DOT) to restrict the SUC levy.

As per DOT's notified guidelines, an additional SUC of 0.5 percent is charged on the entire spectrum holding in case of spectrum sharing in a few bands. Telecom companies had been arguing that this would make spectrum sharing more expensive and could discourage them from participating in the program.

In 2020, DOT had sought TRAI's views on the matter. TRAI had responded by supporting the telcos' contention that the additional SUC levy should only apply to the specific bands being shared.