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NDCP’s focus on optimal pricing of spectrum to be beneficial for the industry, says ICRA

September 28, 2018
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According to ratings and research firm, ICRA Limited, the National Digital Communications Policy’s (NDCP), 2018 focus on optimal pricing of spectrum would be beneficial for the industry.

Currently, the spectrum usage charges (SUC) and licence fee imposed on the telecom industry stands at four per cent and eight per cent respectively, which prove to be a huge burden on the industry. Under NDCP, the focus would be on reforming the licensing and regulatory regime by reviewing the levies and fees including licence fee, USOF levy, SUC as well as rationalising taxes and levies on equipment, infrastructure and services.

To this end, ICRA believes that the implementation of this strategic vision would be essential.

Meanwhile, spectrum is held by the operators in the bands of 800MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz. Now, there is a proposal to auction spectrum in 3300-3600 MHz and 700 MHz bands in the medium term.

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