New Delhi, July 12: The telecom regulator is sticking to its guns on the vexed issue of the spectrum use charge (SUC), which has emerged as the biggest sticking point in deciding the valuation and reserve prices for the various radiowave bands that the government plans to put up for auction later this year from which it hopes to raise around Rs 1 lakh crore.

The Telecom Regulatory Authority of India (Trai) once again said, "All possible steps should be considered by the department of telecom (DoT) to move to a simple, transparent and flat ad valorem SUC regime in accordance with law."

It is a position that Trai has consistently maintained since it first made such a recommendation in October 2013.

The DoT and Trai have been at odds over the spectrum use charge, currently calculated under a complicated weighted average formula that attempts to even out the lumpiness in the calculations depending on whether the spectrum was acquired before or after 2014.

Before March 2014, SUC rates in 800/900/1800 and 2100MHz bands were governed by a slab rate where rates varied from 3-8 per cent of the adjusted gross revenue (AGR) based on the amount of spectrum held by the service provider.

In the case of broadband wireless access (BWA) spectrum in the 2300MHz band - the spectrum band that Mukesh Ambani's Reliance Jio holds in all 23 circles since 2010 - SUC is charged at 1 per cent of AGR.

From 2014, SUC is calculated at a flat rate of 5 per cent for spectrum acquired in the auctions. However, the weighted average formula kicks in while determining the levy in the case of spectrum in 800/900/1800 and 2100 MHz bands acquired at different points of time.

The weighted average is calculated as the sum of (a) spectrum acquired through auctions held in 2014 and 2015 multiplied by 5 per cent and (b) spectrum acquired prior to 2014 auctions multiplied by applicable rates spelt out in an order dated February 25, 2010, and then dividing the sum of (a) and (b) by the total spectrum holding.

The DoT had set its face against Trai's flat rate formula and once again lobbed the ball to Trai through a note issued on June 24, urging it to reconsider its stand.

Trai emphatically stated in its reply today "that any solution based on the weighted average rate, irrespective of the proxy that is used, is at best a temporary solution".

It buttressed its argument by quoting a Government of India press release issued on January 31, 2014 that said, "As a matter of policy, it is desirable to move to a flat rate SUC and adoption of weighted average could provide a path to such transition."