The Telecom Regulatory Authority of India (TRAI) has proposed three models to redistribute the spectrum in the 900-MHz band.
The move comes after late entrants to the sector and dual-technology players, such as Reliance Communications and Tata Teleservices Limited have been demanding that the bandwidth be redistributed amongst all telecom operators. The band is considered as the most efficient for 2G mobile services.
Currently, most of the spectrum within this band is held by incumbent telecom operators such as Bharti Airtel, Vodafone India and Bharat Sanchar Nigam Limited which have realised increased savings in capex and opex due to the spectrum in 900-MHz band. The spectrum in the given band was exhausted in 2001, and since then, the telecom operators were awarded 2G airwaves in the 1,800 MHz band.
In 2010, TRAI had recommended that spectrum in the 900-MHz band be replaced by assignment of equal amount of spectrum in 1,800 MHz band when licences of incumbent operators come up for renewal beginning 2014.
In its latest consultation paper on auctioning of airwaves, TRAI has pointed out that it may consider its 2010 recommendations and redistribute the spectrum in the 900-MHz bandwidth during licence renewal.
TRAI is considering two new methodologies to find a solution to the issue of redistribution. One, it has sought the industry’s comments on its proposal that incumbents be allowed to retain part of the airwaves they hold in the 900-MHz band and the remaining be considered for redistribution.
According to the TRAI?s consultation paper, the licensees can be allowed to retain 5 MHz spectrum in 900 MHz band at the time of renewal of their licences and the rest of the spectrum in 900 MHz band is redistributed by assigning spectrum in 1,800 MHz in lieu of the redistributed spectrum. However, licensees will have to pay the price of spectrum both in the 900 MHz and 1,800 MHz band as determined in the auction when renewing their mobile permits.
TRAI believes that if the aforementioned option is exercised, sufficient spectrum would be left in most regions which can be allocated to new licensees as per the directions of the Supreme Court.
The other alternative proposed by the regulator is to provide operators with an option to surrender spectrum in excess of 5 MHz in the 900 MHz band now, in exchange for equal amount of spectrum in 1,800 MHz band irrespective of the expiry dates of their licences.
