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Airtel, Jio, and Vi Shall be Very Glad With DoT After SUC Order

Airtel Jio Vi

Bharti Airtel, Reliance Jio and Vodafone Concept (Vi) might be very pleased with the Division of Telecommunications (DoT) after the SUC (Spectrum Utilization Costs) order. The telecom division has eliminated the three% ground charge on SUC and this may assist the telcos in saving plenty of future outflows in direction of these statutory charges.

The telecom operators had lately advised DoT that whereas eradicating SUC from future spectrum acquired by means of auctions is an efficient transfer, it wouldn’t imply something if the SUC ground charge of three% of AGR (adjusted gross income) isn’t eliminated.

The Indian authorities had implanted the rule of three% SUC in 2016 to make sure that the revenues for the centre are protected. In the identical 12 months, the SUC for the telcos had been lowered.

On June 21 order, DoT stated that “The weighted common is to be derived by the sum of the product of spectrum holdings and relevant SUC charge, divided by (a telco’s) complete spectrum holding.”

Liquidity Issues Being Addressed by the Authorities

The Indian authorities is addressing the liquidity issues of the telcos. Airtel, Jio, and Vi (Vodafone Concept) will all profit from this transfer. With out the ground of three%, the SUC equal to three% of the AGR for the telcos would drop properly beneath 3%. Because of this the telcos will be capable of save some huge cash that in any other case would have gone out as statutory dues.

By all of the reduction measures introduced until now, the federal government has been specializing in decreasing liquidity stress from the telcos. The telecom operators obtained a four-moratorium for fee of AGR and SUC dues and Vi has additionally agreed to provide the federal government stake within the firm in opposition to the discount of curiosity dues. That is going to learn the telecom sector in the long term and enhance India’s journey into turning a digital nation.

Lt. Gen. Dr. S P Kochhar, DG, COAI, stated “We welcome and thank the Authorities & Minister of Communications for the much-awaited DoT order relating to the levy of SUC prices for spectrum in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz 2500 MHz, 3300 MHz and 26 GHz bands. The order will present readability to telecom service suppliers for the upcoming auctions.”



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