Spectrum share guidelines likely only after Feb auction

Sources say DoT is not keen on announcing the norms before the auction as this might prevent firms from aggressive bids, causing a revenue loss

The guidelines for spectrum sharing and trading by the department of telecommunications (DoT) have been delayed. These are now expected to be finalised only after the auction for spectrum, scheduled next month.

An internal committee of DoT had fixed a deadline of December 19 last year to issue the final norms. However, even the recent Notice Inviting Application for the February auction says the guidelines for these would be notified in due course.

According to sources, DoT is not keen on announcing the norms before the auction as this might prevent companies from aggressive bids, causing a revenue loss. A final decision has to be taken by Telecom Commission (TC), highest policy making body of the department.

The TC is expected to take up the issue of pricing of the 2100 MHz band and the status of the National Fibre Optic Network project on Monday. It will consider the issue of spectrum trading and sharing in the next meeting.

The government is expecting to earn Rs 80,000-1 lakh crore from the auction of frequency in the 800, 900, 1800 and 2100 spectrum MHz bands. The auction is slated to start from February 25.

DoT wishes to allow spectrum sharing only between two entities having second-generation (2G) spectrum in the same service area and not between operators having spectrum in two service areas/circles.

In July last year, the Telecom Regulatory Authority of India (Trai) recommended spectrum in all bands - 2G, 3G, 4G -be allowed sharing but with the proviso that both operators have that spectrum in the same band. However, it did not allow leasing. Earlier, in January last year, Trai had recommended allowing outright transfer of spectrum by companies to other operators across all bands of airwaves, as long as these were bought through auctions in 2010 or later.

DoT is also in the process of formulating the guidelines for inter-operator swapping, irrespective of the type of allocation, to ensure contiguity, according to a note of an internal committee. The department is also reviewing the policy on licensing requirements for import of low powered wireless devices.

The committee was formed recently under the a secretary (telecom) to identify issues of concern to the industry, resolve the issues and frame guidelines.