The Department of Telecom has issued spectrum trading guidelines, allowing telecom operators to procure spectrum from other firms to meet the requirements of their mobile services as well as enhance the service quality.

As per the guidelines, trading will be allowed between two licence holders where spectrum has been assigned through an auction on or after 2010. In cases where market price has been paid for the spectrum, trading will be permitted.

While the move provides an exit for loss making telecom service providers, trading has been permitted only after two years after acquiring the spectrum.

Only outright transfer of spectrum will be allowed and leasing has not been permitted.

Further, spectrum trading shall be permitted on a pan-licensed service area basis or telecom circle basis. If the seller's spectrum is restricted to only to a part of the circle, then the rights and obligations of the seller over the remaining part of the circle will also be transferred to the buyer.

Validity period of the spectrum will not be altered by any trading.

Prior intimation of any trade has to be given to the Department of Telecom 45 days in advance. Sellers will be required to clear all past dues before concluding an agreement. Any dues recoverable after the effective date of trade will be the liability of the buyer.

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