Relief for telcos as govt scraps spectrum usage charge ahead of 5G auction

Nomura estimates annual saving of Rs 1,400-3,000 crore for telecom firms

The government has removed spectrum usage charge ahead of the 5G airwave auction in a move that will enable companies save costs in spectrum purchase.  

“For spectrum acquired through auctions held after 15-09-2021 in different access spectrum bands, no SUC shall be charged,” the department of telecommunications said in its order on Tuesday.

The decision to scrap SUC for spectrum acquired in auctions after 2021 was a part of telecom reforms package that was unveiled last September. However, a formal order was only issued now.

Currently, SUC is levied at differential rates on spectrum acquired through auctions since 2010. A