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DoT committee to scrutinise segregation of BWA spectrum revenues

DoT committee to scrutinise segregation of BWA spectrum revenues

By Press Trust of India | Updated: 31 March 2014 15:01 IST

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The Department of Telecom has constituted a five-member committee that will look into the segregation of revenues earned by telecom operators from the

use of Broadband Wireless Access spectrum.

According to sources, DoT has asked operators to put in place a system within six months for monitoring and verifying the revenues earned from BWA spectrum.

"The competent authority has approved the formation of a committee to ensure satisfaction of the licensor for segregation of revenues," said a source.

The cabinet has cleared flat spectrum usage charge (SUC) of 5 percent for radio-waves auctioned in February. The existing telecom operators are required to pay the weighted average of their existing SUC, and 5 percent for the new spectrum.

(Also see: Cabinet approves spectrum usage charge for 1800MHz and 900MHz bands)

However, the SUC for BWA was kept unchanged at 1 percent. But it was decided that the operators would be required to report the revenues earned from BWA spectrum separately.

If the telecom operators are utilising BWA frequencies in 2300MHz band, they are required to report the revenues earned from them separately.

According to sources, DoT has asked the committee to submit its report by May 15. It has also asked Reliance Jio Infocomm and Bharti Airtel to provide all details related to BWA spectrum.

Reliance Jio has got pan-India spectrum in 2300MHz band whereas Airtel has got it for eight circles, or telecom service areas.

Airtel also bought spectrum in 900MHz band for Delhi, Mumbai and Kolkata and 1,800MHz band in 15 circles in the auction last month.

Reliance Jio bought 1800MHz radio-waves in 14 circles. As per the rules, both the operators have to pay SUC of 1 percent for spectrum in 2300MHz band and 5 percent for the newly acquired spectrum.

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