Telecom panel clears easing spectrum limit

In what will help the merger of Vodafone and Idea and acquisition of RCom’s mobile business assets by Jio, Telecom Commission on Tuesday agreed with Trai’s recommendation to raise the spectrum holding limit of mobile operators.

The decision, however, needs to be cleared by the Union Cabinet. As per the current rules, no mobile service provider can hold more than 25 per cent spectrum in an area and more than 50 per cent in a frequency band.

Trai had recommended that the ceiling on spectrum held by mobile operators within a particular band should be removed. It suggested a 50 per cent cap on combined radiowave holding in efficient bands like 700 MHz, 800 MHz and 900 MHz.

As per the present norms Vodafone- Idea merged entity may have breached the cap in four circles for the coveted 900 MHz band and in 12 circles for the 2500 MHz band, according to reports.

The telecom department had sought Trai’s views on whether the current norms should continue or need review.

This was done after an inter- ministerial group — constituted to look into the financial health of the sector — recommended that the said matter be referred to the regulator.

The Department of Telecom ( DoT) will send drafts of the relief package cleared by the Telecom Commission based on the recommendations of an inter- ministerial panel to Cabinet this week for final approval.

The commission has also approved extension of time period for the payment of spectrum bought in auctions by operators to 16 years from the current 10 years, as recommended by the IMG.

It also approved the IMG recommendation to lower the interest rate on penalties paid by telecom operators by about 2 per cent. It also approved raising of Network for Spectrum project cost to ` 24,664 crore from ` 11,330 crore.