TRAI has recommended to the DoT that a flat rate of spectrum usage charge is the best way forward. However, as a second option, considering that there are legal obstacles to levying a flat SUC on spectrum acquired in the past, especially in the 2300 MHz band in 2010 auctions, it has suggested its own formula to calculate the weighted average. Its formula is not only more complex, but also raises the payable SUC for every operator than what has so far been used by the DoT.

The new formula takes into account the bid values of each band of spectrum to the existing weights. Only the quantity of spectrum is not a sufficient weight, and revenue arising out of each band should also be taken into account. However, since revenue segregation cannot be done, the bid amount paid by the operators was indicative of the revenue expected from that band. While the government had earlier decided to impose a 3 percent uniform SUC for the spectrum being sold in the upcoming and future auctions, for spectrum sold in the previous auctions the Telecom Commission went with the Attorney General Mukul Rohatgi's opinion on clubbing spectrum sold for broadband wireless access services in 2010, to avoid arbitrage in imposing spectrum usage charges on weighted-average formula in futu


 

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