Vodafone Gives A Thumbs-up To Government’s Spectrum Initiatives

A staff member poses with a mock oversized Vodafone Secure SIM card at the Vodafone booth at the CeBit computer fair in Hanover, March, 5, 2012. The biggest fair of its kind open its doors to the public on March 6 and will run to March 10, 2012. REUTERS/Fabrizio Bensch (GERMANY - Tags: BUSINESS TELECOMS SCIENCE TECHNOLOGY)

New Delhi: Hailing recent initiatives of the government like spectrum harmonisation and reduction of spectrum usage charges (SUC), Vodafone India on Tuesday termed these as “progressive steps”.

According to sources, the Telecom Commission has agreed to reduce SUC charge to 3 per cent from 5 per cent of adjusted gross revenue on spectrum that will be purchased in the next round of auction.

The process of spectrum harmonisation is also going on, which will offer additional airwaves.

“The telecom sector is severely debt laden (more than Rs 3 lakh crore at the last count and growing). This reduction in SUC charges from 5 per cent to 3 per cent will free cash flows which can be invested in further enhancing network and customer experience,” Vodafone India MD and CEO Sunil Sood said in a statement.

On harmonisation, Sood said that with Digital India as the guiding vision and consumer demand evolving from voice to data, the telecom industry increasingly needs more of quality spectrum to be made available at reasonable prices.

“Harmonising the available spectrum to offer additional quantum via auction is another progressive step by the government (after spectrum trading and sharing), to maximise efficiency of this precious resource,” Mr. Sood added.