Reliance Jio opposes GSM firms’ demand for uniform SUC

Reliance Jio opposes GSM firms’ demand for uniform SUCMukesh Ambani-led Reliance Jio Infocomm has opposed GSM companies' demand for flat spectrum usage charge, arguing any change in spectrum use charge (SUC) for BWA (broadband wireless) spectrum would be illegal.

Reliance Jio said in a statement, "Unilateral increase in SUC for BWA spectrum from 1 per cent to 3 per cent will be illegal. The government may take appropriate decisions on SUC for the forthcoming auctions but without altering the present regime."

SUC, which is levied annually by the government as a percentage of revenue earned by telecom operators, varies from 3 per cent to 8 per cent.

A uniform SUC has been recommended by the Telecom Regulatory Authority of India (Trai). Telecom operators like Idea, Airtel and Vodafone are in favor of the recommendation as it will provide them relief by decreasing rate they pay for the spectrum.

But, Reliance Jio is opposing the recommendation as it will increase rates it pays for the broadband wireless access spectrum.

Reliance Jio expressed its opposition to the recommendation as the Telecom Commission is considering the issue of spectrum fee. The Commission is expected to send its recommendations to the empowered group of ministers (EGoM) on telecom, headed by Union Finance Minister P. Chidambaram.