The government on Wednesday modified the policy for liberalization of administratively allotted spectrum where market determined prices were not available. This will enable optimal utilization of spectrum by allowing trading and sharing of such airwaves. Such spectrum can be released by paying the most recent reserve price.
The decision was taken on the basis of the recommendations of the Telecom Regulatory Authority of India. The Cabinet also approved TRAI's suggestion that the government can provisionally liberalise spectrum at the price suggested by the regulator for auction and take an undertaking from the operators that they will pay the difference when the auction takes place.
Spectrum trading and sharing rules released last year required liberalisation of administratively allotted spectrum by payment of auction determined prices. "However, 800 Mhz spectrum in certain circles did not have such market determined prices which required an alternative mechanism for liberalisation," said Ravi Shankar Prasad, Minister for Communications and Information Technology, after the Cabinet meeting.
The Cabinet's decision will allow operators to use any technology to deliver third and fourth generation (3G/4G) mobile services. "This will facilitate optimal utilisation of spectrum by introducing new technologies, sharing and trading of spectrum," an official statement said.