The government is likely to permit spectrum sharing among telecom operators in order to overcome the shortage of spectrum in this space.
This is expected to help smaller operators generate revenues by sharing the spectrum lying vacant with them.
A high-level team, constituted to draft the New Telecom Policy 2011, will meet on July 25 to consider the proposal. The group will also review and analyse existing legislations relating to spectrum management and frame the Spectrum Act, which will establish a statutory mechanism for spectrum management and licensing.
It is believed that this group will also discuss the issue of refarming of spectrum, under which the government may request telecom operators to surrender spectrum in the 900 Mhz band, so that the same can be redistributed for high-end services.
Operators like Bharti airtel and Vodafone hold spectrum in this band. Meanwhile, the industry is divided over refarming of spectrum, with the old operators against it and new operators favouring the move.
Also, the Telecom Regulatory Authority of India (TRAI) has recommended fixing the cost of spectrum in the 900 Mhz band 1.5 times higher than for frequencies like 1800 Mhz or 800 Mhz.
