The telecom watchdog said that if the spectrum quantity in a band was the only weightage for calculating weighted average formula, it may lead to certain shortcomings. The inter-ministerial Telecom Commission on Monday reiterated its stand on using the weighted average method to compute the spectrum usage charge (SUC) in addition to introducing proposal for a 3 per cent floor rate for the weighted average calculation, a senior government official said. In its previous meeting on June 7, the panel had cleared a proposal to use weighted average formula for calculating SUC based on the total spectrum holding, for all bands allocated to telecom operators. The official said that the spectrum auction timeline would remain unaffected despite the back and forth of views on SUC. Vodafone India and Idea Cellular would pay SUCs at approximately 4.8 per cent and 4.5 per cent, respectively, of their adjusted gross revenues, the official added.

Source: Indian Express July 25, 2016 19:41 UTC