TRAI Gives Its Nod For Spectrum Sharing

For many years, the telecom industry has been asking Telecom Regulatory Authority of India (TRAI), the regulatory body for telecom sector, to allow spectrum sharing which will help improve the quality of calls i.e. voice clarity and reduce call drops. Now, TRAI has recommended that the Telecom Service Provider (TSP) be allowed to share spectrum.

Spectrum sharing refers to an arrangement between two license holders who have access to spectrum in the same band. This license holder can combine their spectrum License Service Areas (LSA) using a common Radio Access Network (RAN). However, leasing of spectrum is not allowed and the TSP will need to pay an additional 0.5% of their adjusted gross revenue as a usage charge for the spectrum.

The telecom companies, at the time of entering into agreement, will need to inform TRAI. It also recommended that spectrum in the bands of 800 MHz, 900 MHz, 1800 MHz, and 2100-2500 MHz will be allowed to share provided they have spectrum in the same band. A company can hold not more than 50% in a circle and 25% in a frequency band.

India has been divided into four circles namely Metro circle, circle A, B and C. Metro circle consists of Mumbai, Delhi, Kolkata and Chennai. Circle A consists of states of Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu. Circle B comprises of states of Kerala, Punjab, Haryana, Uttar Pradesh, Rajasthan and Madhya Pradesh. Circle C includes states of Himachal, Orissa, Bihar, Assam, Kashmir etc.

Although spectrum sharing is beneficial to the consumers, it will all depend on how the telecom players choose to share spectrum with their peers. The companies’ cost of ownership of a spectrum will come down after this recommendation has been given a go ahead as the expenses incurred to own a spectrum will be shared by the two companies entering into the agreement. 

The agreement between the telecom companies can be challenged by Wireless Planning and Co-ordination wing (WPC) being the custodian of the spectrum. If there are no objections raised within fifteen days by WPC after the agreement has been entered into, the agreement will become operational.

This move to share the spectrum will be good for Idea cellular and Bharti Airtel in the coming trade sessions.