The Department of Telecommunications (DoT) has prepared a draft note on spectrum sharing. According to the draft, operators can share 2G spectrum in a circle without paying one-time usage charge, provided they have already paid for more than 4.4 MHz of GSM spectrum, or 2.5 MHz of CDMA spectrum they hold in that circle.
According to the draft rules, sharing will be allowed without any changes in licence terms and conditions related to spectrum usage, including the carrier size indicated therein. Telecom service providers would have to pay spectrum usage charge at slab rates applicable on the combined spectrum holding.
Initially, the operators will be allowed to share spectrum for five years, which could be extended for another five years, on prescribed terms. Spectrum usage charges will be levied on both the operators individually for the total spectrum held by both the operators together. For example, if an operator X having 4.4 MHz of spectrum shares 4.4 MHz of another operator Y, then both X and Y will be liable to pay spectrum usage charges of 8.8 MHz with effect from the date of such permission.
The government, however, has stated that it shall not allow 3G spectrum sharing. Three players – Bharti Airtel, Vodafone India and Idea Cellular – had signed an intra-circle agreement under which they were using each other?s network in areas where they did not have 3G spectrum. The government did not allow them to share the airwaves and the matter is in the courts. The permission to share will be granted after the payment for the spectrum holding is completed based on its reserve or auction price. However, separate permission will have to be obtained from the DoT.
Further, as per the draft guidelines, spectrum leasing is not permitted. For spectrum which is obtained through auctions, the terms and conditions of the auction should provide for the same.
Even as the spectrum is shared, the government says that both the service providers should individually fulfill the rollout obligations.
