TRAI’s Recommendation on Spectrum Sharing – Let it Happen!

Long- awaited spectrum sharing policy (pooling of spectrum held by the two operators for simultaneous use) for Indian mobile operators can soon be a reality, as Telecom Regulatory Authority of India (TRAI) has released its final recommendations to DoT.

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If we can go back, in 2010 & 2011 TRAI published their views on spectrum sharing among operators. Due to various causes DoT did accept them partly and there were many disagreement between two government agencies and ultimately spectrum sharing continues to be a wishlist item for the industry. Allowing spectrum sharing means there will be spectral efficiency, greater capacity & subsequent cost effective business case.

Highlights of TRAI’s recommendation on spectrum sharing:

1. It can be done between two licensees.

2. Leasing of spectrum is not allowed.

3. It is limited to circle-wise and band-wise.

4. 800/900/1800/2100/2300/2500 Mhz – all bands are allowed for spectrum sharing.

5. Operators can use any technology – 2G/3G/4G or GSM/CDMA under the sharing, provided spectrum acquired through an auction (2010 or after) or where market price has been paid.

6. Two operators to share the airwave, have to inform DoT’s WPC 45 days before the operation starts. WPC may raise questions if there is some objections and even cancel the validation of the deal. During the intimation both parties have to pay non-fundable Rs 50,000 each for each circle to WPC.

7. The Spectrum Usage Charges (SUC) of each licensee should also increase by 0.5% of AGR (adjusted gross revenue).