In a move that would enhance the efficiency of the coveted airwaves and also boost the quality of service offered to customers, Telecom sector regulator TRAI has permitted spectrum sharing among telecom service providers across all six frequency bands, namely 800, 900, 1800, 2100, 2300 and 2500 MHz that have been identified for farm-out among telecom service providers. Until now, telecom operators were allowed to share passive infrastructure such as mobile towers and have been demanding allowing of spectrum sharing for a long time.
According to the regulator, spectrum sharing would be limited to two licensees within the same circle and no permission would be required from the government for the sharing arrangement that will allow two telecom providers to pool their respective spectrum for simultaneous use in order to boost spectral efficiency.
Further, the new guidelines on spectrum sharing, have allowed only spectrum sharing arrangement to a small area within a circle that has high-density traffic, like Connaught Place in Delhi or Dalhousie Square in Calcutta. Besides, it bars sharing of spectrum between telecom players who do not hold spectrum in the same band. Thus, for instance, it will not allow a sharing arrangement if one player holds spectrum only in the 900 MHz band and the other has it in the 2,300 MHz band.
As per the guidelines, post-spectrum sharing, SUC (spectrum usage charges) will increase by 0.5% for both the licensees. The guidelines also suggest a non-refundable processing fee of Rs 50,000 per operator for each service area in which they opt for spectrum sharing.
