Network OperatorsCOAI raises concern over TRAI paper on spectrum caps

COAI raises concern over TRAI paper on spectrum caps

The Cellular Operators Association of India (COAI) has sent a letter to TRAI asking them to reconsider the new proposal for spectrum caps the authority is seeking to enforce. The industry body thinks changing the upper limit for bands will result in an unbalanced playing field among telecom operators.

TRAI had issued a consultation paper concerning the next round of spectrum auction some time ago. It’s seeking comments from all stakeholders regarding its new take on upper limits. Instead of placing caps within each bandwidth, it proposes combining all the airwaves across sub-1GHz bands such as 700MHz, 800MHz and 900MHz.

Spectrum Sharing

TRAI would then set down a limit for how much spectrum one network provider can acquire under the new system. As of now, players are limited to holding 50% of a bandwidth which is deemed fit for beaming out cellular signals and 25% of the total such radiowaves within a telecom circle.

COAI thinks the revamped structure for deciding airwave caps will result in bigger network companies taking over all the premium spectrum available within a single band. According to PTI, the organization says this will invalidate the point of limits, as they are designed to prevent the concentration of radiowaves to 1 or 2 brands.

Also Read: Telecom, I&B ministry to utilize broadcast spectrum for mobile services

Back in November this year, the Telecom Commission had announced its decision to follow TRAI’s suggestions regarding bandwidth limits in-principle. The authority sought to keep the 50% cap intact, while letting unallocated spectrum be included when calculating the maximum amount of airwaves.

The change would allow telecom brands to widen and decongest its network, in addition to making way for market consolidation. COAI members like Vodafone, Airtel and Idea are set to greatly benefit from the new regulation, as they will be able to purchase more spectrum and reduce the pressure in cities like Delhi and Mumbai.

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