Vodafone India Ltd (VIL) has sought Department of Telecommunications’ clarifications on the new Spectrum Usage Charge (SUC) regime that was cleared by Empowered Group of Ministers (EGoM).
The company, the Indian arm of British telecom major Vodafone Group, has sought clarifications on whether additional spectrum will attract the same SUC. This is, in case, VIL acquires additional spectrum in the auctions scheduled to commence in February.
“It is Vodafone’s understanding that as per the EGoM decision, if VIL acquires additional spectrum in the auctions scheduled to commence in February 2014, the same will attract SUC at 5 per cent average gross revenues and a weighted average SUC will be charged on VIL’s existing allocations,” it said in the letter. Vodafone also pointed out that when it surrenders and repurchases spectrum when its licenses expire, the spectrum usage charge would fall, but wanted the government to confirm the same. It also requested that since the auctions due to commence on February 3, the details of the decision be notified formally as a part of the Notice Inviting Applications.