TRAI makes way for spectrum sharing

28 Jan 2014
TRAI makes way for spectrum sharing
  • The Telecom Regulatory Authority of India ratified the spectrum trading guidelines enabling mobile operators to purchase and market airwaves.
  • According to these guidelines proposed by TRAI, a transaction fee on spectrum being exchanged between telecom companies will be collected by the government.
  • The proposed transaction fee was pegged at 1% of the amount of transaction.
  • The spectrum traded will also have a lock-in period.

What is spectrum trading?

Fact
Information

Spectrum trading is expected to be a game changer "as it will allow operators to buy and sell airwaves according to their needs." For example, a company with higher subscribers will have the option to buy additional spectrum from another operator.

Spectrum sharing here for good: India Ratings report

21 Aug 2015
Spectrum sharing here for good: India Ratings report
  • According to the India Ratings research report, spectrum sharing will facilitate big telecom companies better network congestion.
  • Small players too will gain from it by providing advanced mobile technologies like 3G and 4G.
  • India Ratings termed spectrum sharing as "economically viable for both large and small players."
  • However, the report also said that disallowing the spectrum leasing would adversely affect the small players.

Telcos cry foul over 13% fee by government

10 Aug 2015
Telcos cry foul over 13% fee by government
  • The Cellular Operators Association of India (COAI) and the Association of Unified Telecom Service Providers of India addressed their concerns to PMO, finance ministry and the telecom department.
  • They raised reservations over the proposal for the charge of 13% when a firm trades spectrum.
  • The telecom companies claimed that this charge would amount to 'double taxation' and was unfair on them.

Government rejects fee exemption for spectrum sharing

6 Sep 2015
Government rejects fee exemption for spectrum sharing
  • The government rejected the telecom service providers (TSPs) demand for fee exemption for trading of spectrum in future auctions.
  • The telcos contended if exempted they could have saved the money, which could then have been invested in license procurement.
  • The TSPs said that this would only increase their burden as 30% of their revenues already went to government as tax.

Cabinet passes spectrum sharing guidelines

13 Aug 2015
Cabinet passes spectrum sharing guidelines
  • India passed the much-awaited spectrum sharing guidelines, which addressed the problem of mobile phone call drops and also revamp the application of radio frequency spectrum for telecom services.
  • This all access spectrum including traded spectrum would be shared by both licensees which have the same band spectrum.
  • This move was also integral to put a stop to spectrum hoarding.

Cabinet gives a thumbs-up to spectrum trading

9 Sep 2015
Cabinet gives a thumbs-up to spectrum trading
  • The Cabinet approved the spectrum trading guidelines which will allow telecom operators to sell radiowaves to other service providers.
  • This move is expected to cater to the predicament of spectrum shortage.
  • Prior to this, only the government was authorized to designate spectrum to telecom companies through auctions.
  • This move will help the companies use unutilised spectrum and trade in radiowaves.