Inadequate spectrum availability has been one of the main pain points for telecom operators. The launch and growing uptake of high-speed services such as 3G/4G have only made the spectrum crunch more acute.
The government’s approval to spectrum sharing and trading last year brought some respite to operators, as can be seen in the increased activity being witnessed in this space. Efficient utilisation of the otherwise scarce spectrum has been the guiding principle behind such deals. In fact, given the exponential growth in data usage and the consequent pressure on operators’ existing spectrum, there is a serious need to utilise it optimally to serve the growing number of data users in the country.
Interestingly, most of the spectrum sharing/trading deals signed so far have been largely around airwaves, deemed suitable for mobile data-centric services. For instance, Bharti Airtel has, over the past three years, improved its broadband spectrum holding and enhanced its data capabilities in the 4G space across all the telecom circles by acquiring/sharing/trading spectrum in the 1800 MHz and 2300 MHz bands from players like Qualcomm India, Augere Wireless and Videocon Telecom. Most recently, it has entered into a definitive agreement with Aircel and its subsidiaries to acquire the rights to use 20 MHz of spectrum in the 2300 MHz band, across each of the latter’s eight circles. Meanwhile, Reliance Jio Infocomm too has entered into a trading/sharing pact with RCOM.
Going forward, as more operators venture into the 4G space but continue to face a spectrum shortage, sharing will be the best way to optimise resources and leverage synergies. This, in turn, will help the spectrum- starved operators to venture into new geographies for offering 3G/4G services, as well as strengthen their foothold in their existing circles of operations.
