DoT notifies guidelines for liberalisation of administratively allocated spectrum

Department of Telecom has notified guidelines for liberalisation of spectrum, allocated without auction to telecom companies, paving the way for Reliance Communications (RCom) to liberalise its airwaves in four circles.

According to the guidelines, the most recent reserve price recommended by Telecom Regulatory Authority of India (Trai) will be taken as provisional price for liberalisation of administratively allocated spectrum with the balance being collected after deriving market rate through bidding.

The Cabinet earlier this month had cleared liberalisation of spectrum that was allocated without auction to telecom firms.

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The move will enable RCom to liberalise spectrum in four circles – where auction determined price is not available – for Rs 1,300 crore.

"As an interim measure, the most recent recommended reserve price by Trai will be taken as provisional price for liberalisation of the administratively allocated spectrum in such cases," the notification said.

It added, "Subsequent to the completion of the ensuing auction and with the availability of auction determined price, provisional price already charged will be suitably adjusted with the auction determined price with effect from date of liberalisation on pro-rata basis."

The notification further said that in the event of non-availability of auction determined price in the ensuing auction, the price to be charged for liberalisation may be reviewed by the government after completion of such auction.

A liberalised spectrum allows telecom operators to use any technology to deliver mobile services like 3G and 4G. Besides, they will be able to introduce new technologies and share and trade it with other operators for its efficient use.

RCom had applied for liberalising its 800 MHz spectrum in 20 circles a few months back. The company had already paid Rs 5,383.84 crore as spectrum liberalisation fee for 16 telecom circles.

The four RCom circles are – Kerala, Karnataka, Rajasthan and Tamil Nadu – where a market determined price was not available in the 800MHz band.