Spectrum usage charge slashed; will phone bills drop?

Zee Media Bureau

New Delhi: The government has slashed the spectrum usage charges from 5 percent of adjusted gross revenues (AGR) to 3 percent, which could lead to lowering of consumer tariffs for calls and broadband, reported The Times of India.

The report said that the decision to reduce spectrum usage charges was approved by the inter-ministerial telecom commission that met in late March.

The move is also expected to ease the cash for debt-laden mobile service operators reeling under the impact of costly spectrum buys in the auctions.

Another round of the auction of over 2,000 MHz spectrum across seven frequencies is seen taking place in the month of July. The lowering of the spectrum usage charges is likely to free up around Rs 3200 crore for mobile companies, just the kind of incentive the mobile services operators would have liked to have before the auction in July.