As per sources, the Telecom Commission is expected to thrash out the spectrum cap issue within the sharing and trading of radiowaves on November 10. Network providers have been seeking a clarification on the current rules governing the cap for a while now.
The inter-ministerial panel meeting will seek to assuage the concerns companies have on the matter. Spectrum cap alludes to the maximum airwaves a telecom player can be in possession of in order to provide wireless services. It currently stands at 50% in a band suitable for beaming out mobile signals and 25% of the total bandwidth assigned in a telecom circle.
As per PTI, the Telecom Regulatory Authority of India (TRAI) is of the view that these guidelines for spectrum caps do not have to be modified. However, the body had previously stated in July that unallocated telecom bands should also be counted when formulating the limit of airwaves which a brand can legally hold.
The opinion was sought out by the Department of Telecom (DoT) for its report, where it endorsed TRAI’s findings on the concern. If allowed, the move would benefit the telecom industry as it would raise the spectrum cap and increase the amount of radiowaves an operator can own. The change in the rules may especially lead to gains for those firms looking to consolidate its holdings.
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The DoT had announced its rules for the liberalization of 2G bands last week. The system is expected to help companies like Reliance Communications, Bharti Airtel, Idea Cellular, Aircel, Tata Teleservices and Vodafone India to free their bandwidth for various other uses such as providing 4G connectivity.