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TRAI to determine and recommend spectrum usage charges on ISPs

December 15, 2014

The Telecom Regulatory Authority of India (TRAI) is likely to levy spectrum usage charges (SUC) on the Internet service providers (ISPs) for using frequency airwaves for offering services. In this regard, TRAI has asked the Department of Telecommunications (DoT) to provide inputs on the quantity of spectrum held by ISPs in various frequency bands along with their annual licence fee payouts.

After examination of the information, the telecom regulator will come up with a roadmap for levying SUC on ISPs by early 2015.

At present, only operators are required to pay a fee for using spectrum. However, TRAI has been of the view that ISPs should be treated at par with other telecom service providers on the matters of gross revenues and licence fees and therefore, must be charged with user fee for using spectrum.

Earlier in May 2014, TRAI had proposed an upward revision of the license fee from 6 per cent to 8 per cent on ISP’s adjusted gross revenues.

 
 

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