The Telecom Regulatory Authority of India (TRAI) has valued the revenue potential of re-farmed spectrum at several trillion rupees.
Re-farming spectrum pertains to the reassigning of government-regulated spectrum for communication services with higher value in terms of greater economic or social benefit. The users of the existing spectrum are usually compensated.
Meanwhile, TRAI has informed the Department of Telecommunications (DoT) that, “The re-farming process holds significant potential from the point of view of both sectoral development as well as generation of revenues to the government, which can be of the order of a few trillion rupees. It is absolutely necessary therefore that there should be a dedicated fund at DoT?s disposal for making the requisite investments.”
TRAI reportedly plans to initiate a consultation process to explore the feasibility of liberalisation of spectrum along with auction of spectrum in the 700 MHz band on one hand, while reviewing the spectrum usage of government agencies on the other.
TRAI has also asked DoT to take a formal decision on this issue, to entrust the regulator with this function under Section 11(1)(a) of the TRAI Act.
TRAI?s recommendations are in response to DoT’s reference on the need to create a specific fund for spectrum re-farming, using 50 per cent of the realisation from all proceeds from spectrum, including from auction proceeds as well as spectrum usage charges.
DoT had given a mixed response to TRAI?s recommendation for the creation of such a fund. At a policy level, DoT has said that refarming will have to be done from government agencies, including the Ministry of Defence and the Department of Space.
