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News Update

2G spectrum sharing approved

08 Feb. 2012

India’s Telecom Commission has granted permission to allow the country’s mobile network operators to share 2G spectrum, the Economic Times reported.

The commission, which is the decision-making body of the Department of Telecommunications (DoT), attached riders to govern any spectrum sharing agreements that are struck between operators.

One of the riders says only cellcos that have frequencies in any particular circle will be permitted to share their spectrum.

The Commission states the 2G spectrum can be shared only between two spectrum holders. In other words, a non-licensee or licensee who has not been assigned spectrum will be prohibited from the spectrum trading. Further, two operators may only share their respective spectrum if their combined holdings do not exceed limits prescribed in the country’s mergers and acquisitions norms.

Any spectrum sharing deals have to be renewed every five years, while both companies will be required to pay usage charges on the total airwaves held jointly.