Extra fee to be levied only for shared spectrum: Trai

Trai also suggested that two telecom operators in a spectrum-sharing agreement should have the flexibility to exit the clause, which should be mentioned in spectrum sharing guidelines.

The Telecom Regulatory Authority of India (Trai) on Monday clarified that the additional spectrum usage charge (SUC) of 0.5% of the adjusted gross revenue (AGR) will be applicable to airwaves that have been shared by two telecom operators and not to the entire spectrum of a licencee.

Customers buying Reliance Jio sims at a Reliance Digital centre in Mumbai.(Aniruddha Chowdhury/Mint File Photo)

For instance, in the case of Reliance Jio Infocomm Ltd, which has been using Reliance Communications Ltd’s spectrum in the 800 megahertz band under a sharing agreement since 2016, both Reliance Jio and RCom will have to pay an additional 0.5% SUC on the airwaves shared and not on the other bands they hold.

“It is clarified that as per the existing spectrum-sharing guidelines, an increment of 0.5% on spectrum usage charge rate should apply on the spectrum holding in a specific band in which sharing is taking place, and not on the entire spectrum holding (all bands) of the licencee,” Trai said.

Trai also suggested that two telecom operators in a spectrum-sharing agreement should have the flexibility to exit the clause, which should be mentioned in spectrum sharing guidelines.

“To provide flexibility to the TSPs (telecom service providers) to manage their spectrum on need and commercial basis, suitable exit clause for intimation of termination of an existing spectrum-sharing arrangement by the involved TSPs should be included in the spectrum sharing guidelines,” it said.