The Indian government is preparing to waive spectrum usage charges (SUC) on airwaves purchased through auctions held before September 2021—a move that could offer financial relief worth thousands of crores to telecom operators. This comes as part of the broader effort to ease the financial burden on the sector and support ongoing investments in network infrastructure.
Back in June 2022, the government had already scrapped SUC for spectrum bought in auctions after 15th September 2021. However, no such relief was extended to the airwaves acquired in earlier auctions. Now, that gap is likely to be closed, with the SUC waiver expected to be extended to include pre-2021 spectrum as well.
The proposal to waive SUC on spectrum acquired through auctions held before 2022 is expected to receive approval soon, according to a few sources. The intended objective is to ease financial pressure on telecom operators and enable continued momentum in network expansion.
Sources also indicated that the issue has already been discussed within the Department of Telecommunications (DoT) and other concerned ministries, with a formal announcement likely to follow shortly.
In addition to the SUC payment, typically around 3-4 percent of a telecom company’s adjusted gross revenue (AGR), operators are also required to pay an 8 percent license fee to the government, a portion of which (5 percent) goes toward the Universal Service Obligation Fund (USOF).
The expected relief is likely to benefit companies like Vodafone Idea, Bharti Airtel, and Reliance Jio, as they work to scale up 5G services and improve overall telecom infrastructure. The move is seen as a timely step toward improving liquidity and boosting sector growth.
Following are the telecom stocks that have experienced a rally as the government plans a SUC waiver worth thousands of crores:
Mahanagar Telephone Nigam Limited
With a market cap of Rs. 3,352 crores, the stock moved up by nearly 19.5 percent on BSE, rising to Rs. 58 on Wednesday. MTNL holds a market share of 0.08 percent in terms of Wireless (Mobile) Subscribers as of April 2025.
Vodafone Idea Limited
With a market cap of Rs. 77,248.6 crores, the stock moved up by nearly 6 percent on BSE, rising to Rs. 7.27 on Wednesday. Vodafone Idea holds a market share of 17.66 percent in terms of Wireless (Mobile) Subscribers as of April 2025.
Vodafone Idea is expected to be among the biggest beneficiaries of the proposed SUC waiver, given its significant financial stress. The telecom operator is currently grappling with a debt burden of over Rs. 2 lakh crore, and sources estimate that the SUC relief alone could offer the company a benefit of nearly Rs. 8,000 crore.
In addition, as of March 2025, Vodafone Idea’s outstanding adjusted gross revenue (AGR) dues stand at Rs. 83,400 crores. The company is scheduled to begin annual instalment payments from March 2026, continuing through to the end of FY31.
Bharti Airtel Limited
With a market cap of Rs. 11.2 lakh crores, the stock moved up by nearly 2 percent on BSE, rising to Rs. 1,970 on Wednesday. Bharti Airtel holds a market share of 33.65 percent in terms of Wireless (Mobile) Subscribers as of April 2025.
Reliance Industries Limited
With a market cap of Rs. 19.8 lakh crores, the stock moved up by nearly 1.5 percent on BSE, rising to Rs. 1,472 on Wednesday. Among the major operators, RIL’s telecom arm Reliance Jio holds the largest market share of 40.76 percent in terms of Wireless (Mobile) Subscribers as of April 2025.
Written by Shivani Singh
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