The DoT has come out with its guidelines to liberalize the 2G spectrum, allowing telecom operators to offer various services such as 4G connectivity through the same airwaves. The move is expected to benefit a large number of providers like Reliance Communications, Vodafone, Tata Teleservices, Aircel, Idea Cellular and Airtel.
As per the ruling, all existing CMTS/UAS/UL companies with licenses can liberalize their government-issued radiowaves holding in the 800MHz and 1800MHz bands, which were issued to them before auctions took place in November 2012. The development may further aid brands to take full advantage of the recently announced spectrum sharing and trading regulations.
That’s in addition to speeding up the consolidation process. In order to start the liberalization, companies have to apply for it in writing and pay a non-refundable fee of Rs 50000. According to PTI, the network players must then submit a bank guarantee equal to the one-time spectrum charges (OTSC) required by the administration.
The OTSC demand has been a contentious issue between telecom brands and the DoT for some time now. The matter was dragged into court and is still under sub-judice. If followed, the companies would cumulatively have to pay Rs 31000 crore to free its airwaves. With the issuing of the new rules, the problem might see some movement going forward.
Also Read: Telecom companies allowed to trade spectrum two years after auctions
The 2G spectrum to be liberalized will have the latest auction-determined value levied on it. In cases where the auction cost is more than a year old, the market rate would be decided by indexing the last price at the SBI prime lending rate. The bandwidth will additionally be freed only for the remaining amount of time the operator holds the license.