COAI backs TRAI proposal on flat SUG

NEW DELHI: The industry body COAI said that government should move to a flat levy for spectrum usage charge (SUG) as suggested by Telecom Regulatory Authority of India (TRAI) or clearly specify a timeline in case it decides to adopt an interim weighted average formula, according to PTI report.

The Cellular Operators Association of India (COAI), is an industry association of GSM mobile service providers in India.

Welcoming TRAI sticking to its stated position for a flat spectrum usage charge (SUC), COAI Director General Rajan S Mathews told PTI, "We believe this should move to the flat 1 per cent previously recommended by TRAI."

Talking about the "constraints" of the regulator due to the terms of reference, Mathews said, "The Cabinet and the Telecom Commission are not so constrained and should move to what Trai sees as the appropriate SUC regime, which is a flat SUC rate, and not a weighted average approach."

He further said that if the Cabinet decides to adopt an interim weighted average method, it should clearly specify in the NIA (Notice Inviting Applications) when it intends to move to a flat spectrum usage rate, as recommended by the telecom watchdog.