The Indian government has approved spectrum trading between telcos in a move it contends will boost competition, improve service quality and make it easier to do business in the country.
The Indian government has approved spectrum trading between telcos in a move it contends will boost competition, improve service quality and make it easier to do business in the country.
The Union Cabinet said in a statement that the newly-adopted guidelines on spectrum trading, based on a Department of Telecommunications proposal and recommendations by the Telecoms Regulatory Authority of India (Trai), are “expected to transform the spectrum usage in the telecom sector”.
Under the new rules, operators will be able to trade the right to use spectrum in all bands, however the government will retain ownership.
Telcos will not require government permission to transfer airwaves, but must inform it of their intention to do so at least 45 days in advance. Operators will also need to ensure their agreements comply with the rules or they will be cancelled.
Until now, only the government had been able to allocate spectrum to telcos via auctions. Licences lasted for 20 years which, the government acknowledged, resulted in some operators hording unused airwaves and others unable to access as much as they need.