Vodafone Idea (Vi), the third-largest telecom operator will be able to benefit from the recommendations of the Telecom Regulatory Authority of India (TRAI) on spectrum surrender guidelines. Not just Vodafone Idea, but Bharti Airtel and Reliance Jio will also be able to benefit from this. But the position where Vi is in currently, the recommendations on spectrum surrender guidelines will make a huge difference in the telco’s business.
So what are these recommendations precisely and how Vodafone Idea will benefit from them? Let’s find out.
What are the Recommendations for Spectrum Surrender?
The spectrum surrender guidelines given by TRAI now permit the telcos to surrender the spectrum after a minimum of 10 years from the date of acquisition of the spectrum. Further, the operators must make a request for surrendering the spectrum 12 months in advance. The Department of Telecommunications (DoT) will provide in-principle approval in 60 days from the date of the application and the telecom operators must clear all the dues related to the spectrum as communicated by DoT.
The surrendered spectrum will be put into the auction immediately by the DoT and the operator who has surrendered a particular frequency won’t be allowed to bid for it in the auction for a minimum of 2 years. In addition to this, the telcos will also have to pay a surrendering fee of Rs 1,00,000.
This is a particularly good thing for Vodafone Idea as the telco will be able to get rid of airwaves that are not serving the company and its business in any manner. In addition to this, both Jio and Airtel would also be able to benefit from this recommendation of the TRAI.
The TRAI had also suggested a price cut on the airwaves and recommended that DoT should include new frequency bands for 5G in the upcoming spectrum auction. The telecom industry has become a more fertile ground for private telcos than it was a year back because of all the support from the government.