Cabinet sets draft norms for spectrum sharing

Operators can share 2G spectrum without a one-time usage charge, provided they paid for more than 4.4 MHz of GSM spectrum

 

The department of telecommunications (DoT) has prepared a draft note on spectrum sharing, under which  operators can share 2G telecom spectrum without a one-time usage charge, provided they have already paid for more than 4.4 MHz of GSM spectrum, or 2.5 MHz of CDMA spectrum.

This sharing will be possible without any change in terms and conditions of licence of use of spectrum, including the carrier size indicated therein. Telecom service providers would have to pay spectrum usage charge at slab rates applicable on the combined spectrum holding according to the draft rules being prepared by the DoT.  

The top three players — Bharti Airtel, Vodafone India and Idea Cellular — fall in the category. The permission to share spectrum would be given for five years, which could be extended for another five years, on prescribed terms.

Spectrum usage charges will be levied on both the operators individually for the total spectrum held by both the operators together.

 In other words, if an operator X having 4.4 MHz of spectrum shares 4.4 MHz of another operator Y, then both X and Y will be liable to pay spectrunm usage charges of 8.8 MHz with effect from the date of such permission.  

The government however said that it shall not allow sharing of 3G spectrum. The top three players had signed intra circle agreements under which they were using each other’s network in areas where they did not have 3G spectrum. The government did not allow them to share and the matter is in the courts.

The permission to share will be granted after the payment for the spectrum holding is done based on its reserve or auction price. However, separate permission will have to be obtained from the DoT.

The sharing of spectrum would involve both the service providers utilising the spectrum. Leasing of spectrum is not permitted, the guidelines say.  For spectrum which is obtained through auction, the terms and conditions of the auction should provide the same.

Even as the spectrum is shared, the government says that both the service providers should individually fulfill the rollout obligations. The licence conditions for spectrum mandates the operator to complete a certain percentage of a circle to be brought under the network.