DoT waives 3% SUC floor rate on 5G spectrum

New Delhi: In a big relief for telecom companies, Department of Telecommunications (DoT) has scrapped the three per cent floor rate on spectrum usage charge (SUC). As the government prepares for 5G spectrum allotment next month, the telecos had been demanding to scrap the SUC floor rate, equivalent to 3 per cent of adjusted gross revenue (AGR), to cut their 5G spectrum payouts.

The DoT, in its latest SUC computation order that came out late on Tuesday, did not mention the 3 per cent floor rate, which means it has been scrapped, industry watchers said.

The Cellular Operators Association of India (COAI) welcomed the much-awaited DoT order regarding the levy of SUC charges for spectrum in 600, 700, 800, 900, 1800, 2100, 2300, 2500, 3300 MHz and 26GHz bands.

"The order will provide clarity to telecom service providers for the upcoming auctions," said Lt Gen Dr SP Kochhar, DG, COAI. The government is set to launch 5G spectrum bids at the end of next month.