The State Bank of India (SBI) has recommended setting-up a spectrum exchange which can be used by the operators for trading spectrum. SBI has said that the exchange can also be utilised by the government for auctioning additional spectrum.
In a written communication to the Telecom Regulatory Authority of India (TRAI), SBI has said the government should consider allowing trading of spectrum which has been granted by way of auction at a market determined price (i.e. liberalised spectrum) on a common trading platform. Such trading can be carried by way of outright sale as well as on a short/long-term lease basis and standardised products may be created in this regard.
According to SBI such a practice will ensure that the unutilised spectrum available with various players can be utilised effectively by the players which are facing challenges with inadequate spectrum. In addition, such a practice will also provide liquidity for the resource (spectrum) to players who have to wait for the spectrum auction to take place, which happen only periodically. Better liquidity in turn will provide the authorities more relevant and accurate benchmarks for setting reserve prices for future spectrum auctions.
Moreover, steady availability of spectrum through exchange shall encourage competition and ensure that niche players requiring smaller quantities of spectrum are also able to compete in the market.
