One rate of spectrum usage charge for all

India's chief law officer, Attorney General Mukul Rohatgi has opined that the government cannot raise the spectrum usage charge (SUC) levied on Reliance Jio and other broadband wireless access (BWA) providers to bring it on par with the rate paid by competitors operating in the same market. If the rate cannot be revised upward for one player, for whatever reason, the logic of a level-playing field calls for the rate at which others pay SUC to be brought down to Reliance Jio's level.
The Attorney General has based his opinion on the legal terms of the 2010 auction of 2300 MHz spectrum, in which the SUC was set out as 1% of adjusted gross revenue. But then, that auction of wireless broadband spectrum did not envision the broadband access provider offering tele phony services. BWA providers were sub sequently allowed to offer voice services.

This brings them on par with other tele com operators. It is against natural justi ce and fair competition for the govern ment to charge different operators provi ding the same service different rates of a sovereign levy . In any case, after the government began to allocate spectrum on the basis of competitively bid payment for spectrum, it makes little sense to levy a separate SUC. SUC is a legacy from the era when spectrum was allotted, without any separate payment, bundled with a licence to operate. Once operators lease spectrum from the government paying thousands of crore rupees for the favour, why extort an additional SUC from them?
The government cannot allow legal quibbles to tilt the playing field in telecom. Institutionalised, unequal competition that favours some at the expense of others will not only lead to legal wrangles but also earn for the country a damaging reputation for crony capitalism.