Trai recommends SUC be levied on only shared bands, not entire spectrum holding

The telecom regulator has recommended that the incremental spectrum usage charge (SUC) of 0.5% levied on operators when they share airwaves, must apply only on the shared bands instead of the entire spectrum holding of the licensee.

“The Authority concurs with the views of the stakeholders that in case incremental SUC is made applicable on overall weighted average, the cost of spectrum sharing could surpass the benefits achieved by the TSPs,” the telecom regulatory authority of India (TRAI) said in its recommendations to the telecom department released Monday.

TRAI said that there is no rationale in incrementing overall weighted average SUC, when spectrum is being shared only in specific band(s). Because sharing is allowed only when two telecom service providers (TSPs) hold airwaves in the same band, network capacity would be enhanced only in those bands.

TRAI also recommended that a suitable exit clause may be inserted in the spectrum-sharing guidelines in order to provide flexibility to the telcos to manage their spectrum on need and commercial basis.

Currently, shared airwaves are valid up to the balance period of the license or up to the period of the right of use spectrum, whichever is earlier, but lacks guidance on two carriers wanting to exit the arrangement prior to its validity.

The rationale behind an added 0.5% charge was that pooling of spectrum would increase the spectrum utilisation, and additional capacity would generate more revenue.