Revenue

Spectrum Usage Charges (SUC)- An Overview

Spectrum Usage Charges (SUC)are payable by Licensees, in four quarterly instalments during each financial year. The quarterly instalments of SUC dues for the first three quarters of a financial year,are payable within 15 days of the completion of the relevant quarter.However, Spectrum usage charges for the last quarter of the financial year, are payable by 25^th March of the financial year, on the basis of estimated revenue.

The difference between the payment made and actual amount payable (if any) for the last quarter of the financial year, is to be adjusted and paid within 15 days of the end of quarter.

From 1^st quarter of 2018-19 onwards, SUC dues are payable, as a percentage of actual Adjusted Gross Revenue (AGR).

SUC dues for administratively allotted Spectrum, are chargeable, as per Slab rates, notified vide DoT Headquarters, New Delhi, letter no. 1000-56/2004-WFD dated: 11-02-2011.

For Spectrum acquired in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz Spectrum bands, through auctions,prior to auction in pursuance of Notice Inviting Application (NIA) No. 1000/06/2016-WF (Auction) dated: 8^th August 2016, SUC dues are payable @ 5% of Adjusted Gross Revenue, which shall not be less than 5% of the Bid amount.

For Spectrum acquired in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz Spectrum bands, through auction, in pursuance of Notice Inviting Application (NIA) No. 1000/06/2016-WF (Auction) dated: 8^th August 2016, SUC dues are payable @ 3% of Adjusted Gross Revenue (AGR), excluding the revenue from Wireline services

For weighted Average of SUC rates, across all Spectrum assigned to an operator (whether assigned administratively or through auction or trading) in all Access Spectrum bands, including Broad band Wireless Access Spectrum in 2300 MHz/2500MHz band, acquired in2010 auction, shall be applied for levying SUC dues, subject to a minimum of 1% of AGR, excluding revenue from Wireline services. The Weighted Average Rate is to be derived by sum of product of Spectrum holding and applicable SUC rate, divided by total Spectrum holding. The weighted average rate is to be determined operator wise, for each service area. The method of calculation of weighted average rate of Spectrum usage charges, is shown in the Annexure-I

For the purpose of calculation of Spectrum usage charges, Spectrum holding shall be calculated as per the following methodology:

In frequency Division Duplex (FDD) bands (i.e. 700 MHz, 800 MHz, 900 MHz, 1800 MHz and 2100 MHz): Allotted Spectrum is equal to the sum of quantum of uplink and downlink frequency allotted in the band.
In Time Division Duplex (TDD) bands (i.e. 2300 MHz and 2500MHz): Allotted Spectrum is equal to the quantum of frequency allotted in the band.

Besides, for the purpose of calculation of Spectrum usage charges, there shall be a minimum/presumptive AGR, which shall not be less than 5% of the bid amount. The calculation of Spectrum usage charges shall be on the basis of minimum/presumptive AGR or the actual AGR, whichever, is higher.

The weighted average rate shall be kept to two decimal points by rounding off the second decimal figure to the next higher digit. The rounding off shall be made to the next higher digit at two decimal points, even if the third decimal point is less than five.

Detail of Licensee wise collection of Spectrum Usage Charges in r/o H.P Telecom Circle for the last 3 years
Sr. No.	Name of Licensee	Licence Type	Technology used	F.Y. 2016-17	F.Y. 2017-18	F.Y. 2018-19	Total
1	BSNL	CMTS	GSM 3G	0	83271885	30465814	113737699
1	BSNL	CMTS	CDMA	0	48568>	704	49272
2	M/s Tata Teleservices Limited	UASL-DT	GSM	533375	370058	120151	1023584
2	M/s Tata Teleservices Limited	UASL-DT	CDMA	3744817	1132418	944980	5822215
3	M/s Reliance Communications Limited	UASL	CDMA	621512	5295701	1707033	7624246
4	M/s Reliance Telecom Limited	UL Access Service	GSM 3G	50726938	21131559	0	71858497
4	M/s Bharti Airtel Limited	UL Access Service	GSM 3G	254760128	161367350	111485636	527613114
5	M/s Idea Cellular Limited	CMTS	GSM 3G	47557526	21880028	13194575	82632129
6	M/s Vodafone Mobile Services Limited	UASL	GSM	32165033	19381023	5108544	56654600
7	M/s Dishnet Wireless Limited	UASL	GSM	12530271	5022003	0	17552274
8	M/s Reliance Jio Infocom Limited	UL Access Service	GSM/LTE	4417145	61724219	143163021	209304385
	Total			407056745	380624812	306190458	1093872015

License Finance –Brief.

The CCA HP, office is collecting license fee from the telecom operators licensed under the Indian Telegraph Act 1885 for providing various telecom services in the H.P Service Area.

The terms & conditions of the license prescribe the Gross revenue, Adjusted Gross Revenue, percentage levy of license fee payable etc. The licensee is permitted to make prescribed deductions from Gross Revenue and arrive at the Adjusted Gross Revenue (AGR), on the basis of which Service Provider is required to work out the license fee at the prescribed percentage basis and deposit it on self assessment basis, quarterly.

The CCA, H.P. performs the following functions:

(i) Collects license fee from all UASL/ CMTS/ Basic/UL/ ISP & ISP- ITs/ NLD/ ILD/ PMRT Service Providers in H.P. service area.

(ii) Carry out the verification of deductions claimed by the Service Providers holding UASL, CMTS, Basic, UL, and allows /disallows claims for deduction based on such verification, accordingly.

(iii) Assessment of License Fee payable w.r.to decentralized licenses.

(iv)Maintenance of Financial Bank Guarantees & Performance Bank Guarantees as prescribed under the license, its periodical review for validity and amount.

(v) Accounting of the above Revenue and submission of periodical reports to DOT HQ.

(vi) Maintenance of the account for CAF/EMR Penalties raised by TERM Cell

Office of CCA ensures that dues of government are correctly assessed w.r.t. license fee and deposited into the Government account timely.

Detail of TSPs/ISPs