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Govt approves spectrum trading guidelines

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VoicenData Bureau
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spectrum trading guidelines

NEW DELHI: The Union Cabinet today chaired by the Prime Minister Narendra Modi approved a proposal of the Department of Telecommunications (DoT) on guidelines for spectrum trading, arising from the recommendations of the Telecom Regulatory Authority of India (TRAI).

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The decision comes following the Cabinet recently approving spectrum sharing rules. Together with the earlier decision, this is expected to transform the spectrum usage in the telecom sector and fix the call drops problem to a certain extent.

Spectrum trading will be allowed only between two access service providers only outright transfer of right to use the spectrum from the seller to the buyer shall be permitted.

“Spectrum trading will not alter the original validity period of spectrum assignment as applicable to the traded block of spectrum,” the Cabinet said.

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“The seller shall clear all his dues prior to entering into any agreement for spectrum trading. Thereafter, any dues recoverable up to the effective date of transfer shall be the liability of the buyer. The Government shall, at its discretion, be entitled to recover the amount, if any, found recoverable subsequent to the effective date of the transfer, which was not known to the parties at the time of the effective date of transfer, from the buyer or seller, jointly or severally,” it maintained.

A licensee shall not be allowed to trade in spectrum if it has been established that the licensee had breached the terms and conditions of the licence and the licensor has ordered for revocation/termination of its licence.

As per the other rules, spectrum trading will be permitted only on a pan-LSA (Licensed Service Area) basis. In case the spectrum assigned to the seller is restricted to part of the LSA by the Licensor, then, after trading, the rights and obligations of the seller for the remaining part of the LSA with regard to assignment of that spectrum shall also stand transferred to the buyer.

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