The Hindu Business Line : TRAI for sops to promote better use of spectrum

WITH the rapid growth in mobile telephony making spectrum a scarce resource, the Telecom Regulatory Authority of India (TRAI) has started an exercise to ensure its optimal allocation and efficient usage.

TRAI released a consultation paper on Monday that seeks to address issues such as efficient utilisation, allocation and pricing of spectrum. The regulator has asked the cellular operators to make efficient use of the scarce commodity.

Currently, additional spectrum is allocated to operators on the basis of their subscriber base and service roll out. TRAI feels that there is a need to evolve a spectrum allocation procedure that offers an incentive to efficient use of spectrum. It has also advocated release of more spectrum to cellular operators to ensure continued growth of the telecom sector.

"The present networks were evaluated against various possible theoretical benchmarks and initial assessments suggest that in a number of networks there was scope for improvement of spectral efficiency," it says.

International experience shows that greater amount of spectrum has been allocated in other countries, TRAI says in its paper. In India, cellular operators have been allocated spectrum varying from 2x2.5 MegaHertz (Mhz) to 2x10 Mhz.

Some countries are also using bands other than 800 Mhz, 900 Mhz and 1800 Mhz such as 450 Mhz, 1900 Mhz for cellular operations, it says.

TRAI has sought comments from the industry and experts on the minimum spectrum allocation to the existing and new entrants and cap on the spectrum assigned to each operator.

"Consultations are also invited on whether competitive allocation procedure be adopted in cases where there is scarcity and whether spectrum is to be allocated in a service and technology neutral manner," the paper says.

Discussing the pros and cons of various methods of spectrum pricing such as auction, revenue sharing, administrative incentive pricing and beauty contest, TRAI has sought inputs on the appropriate methodology to determine spectrum pricing for new and existing operators and incentives through pricing to encourage rural coverage.

The regulator is also seeking views on whether the spectrum market should be opened up for trading while in case of surrender of spectrum, it has asked the industry's opinion on whether there be any refund for spectrum surrender.

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