DoT estimates Rs3,738 cr loss on lowering SUC

“By charging Trai recommended reserve price and flat rate of SUC (spectrum usage charge) of 3 per cent on AGR vis-a-vis the existing rate 6 per cent…the loss in Net Present Value term at 12.5 per cent discounting would be Rs 3,738 crore,” said an official source.

While estimating the loss,DoT assumed that licences of three operators would get spectrum at Trai recommended price and the same quantum that they hold now.

The Trai has recommended implementing a uniform SUC of 3 per cent from April 1,2014 and keeping the upper limit of SUC slab at 5 per cent. SUC,which is levied annually by the government as a percentage of revenue earned by mobile operators,varies from 3-8 per cent.

While the recommendation may end up providing some relief to players such as Airtel,Vodafone,Idea Cellular and Reliance Communications,it may burden the holders of broadband wireless access spectrum like Reliance Jio Infocomm who are required to pay 1 per cent SUC now.