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The Ministry of Communications has released a draft notification proposing major changes to India’s spectrum-sharing framework. Issued on 1 December 2025, the draft Telecommunications (Sharing, Trading, and Leasing of Spectrum) Rules, 2025 suggests allowing one-way spectrum sharing between telecom operators in order to make more efficient and profitable use of unused airwaves.
The proposal marks a significant shift from the current regime, which permits sharing only within the same frequency band and requires operators to obtain prior government approval. Under the new system, operators within the same telecom circle and holding the same category of authorisation would be able to share spectrum across multiple frequency bands, not just within a single band.
The draft rules state that the sharing of spectrum rights “may be permitted in a service area, in respect of authorised entities holding the same category of authorisation in the same service area, within each spectrum-band category.”
Spectrum Categories
The draft defines four categories of spectrum:
Category 1: Sub-1 GHz
Category 2: Mid-band (Frequency Division Duplex)
Category 3: Mid-band (Time Division Duplex)
Category 4: High-band spectrum
Captive 5G networks will not be restricted by category, giving enterprises greater flexibility in their deployments.
Eligibility requirements
To qualify for spectrum sharing, the draft stipulates that an operator must have held at least 80% of its spectrum in the relevant band within a service area for a minimum of two years from the date of acquiring the spectrum.
The DoT has also proposed replacing the existing fixed sharing fee with a 0.5% pro rata charge based on the value of the shared spectrum. This move is expected to give telecom companies greater flexibility in managing spectrum resources and expanding high-bandwidth services. Additionally, operators will be able to share spectrum within the same category through a single agreement, simplifying compliance and administration.
How the new rules change spectrum sharing
Currently, operators can share spectrum only within the same band. For example, a company holding 900 MHz spectrum can share it only with another operator holding 900 MHz. Under the revised rules, sharing becomes category-based rather than band-based. This means that an operator with 700 MHz spectrum would be able to share with another holding 900 MHz, as both fall under the Sub-1 GHz category.
This shift could allow operators to unlock idle spectrum, monetise under-used assets and improve network efficiency. The flexibility to tap into unused partner spectrum across bands and circles is also expected to support more efficient 5G rollout and coverage improvements.
What the new spectrum-sharing rules mean
The new spectrum-sharing rules are intended to unlock large pockets of unused airwaves held by telecom operators. Rather than restricting sharing to individual frequency bands, the rules group multiple bands into broader categories, allowing far greater flexibility in how operators share their spectrum. This shift is expected to ensure more efficient use of a scarce national resource by preventing valuable frequencies from lying idle.
It should also support faster and more cost-effective 5G deployment, as operators will be able to access partner spectrum within the same category to strengthen coverage and increase capacity without relying on expensive new auctions.
In addition, companies will be able to monetise spectrum they are not actively using, improving financial resilience in a sector already under financial strain. The move from band-level to category-level sharing, coupled with a simplified fee structure and single-agreement model, is also designed to reduce administrative burden and streamline spectrum management across the industry.