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  3. DoT asks TRAI’s view on spectrum re-farming

DoT asks TRAI’s view on spectrum re-farming

30 Oct 2012 Evaluate

In the absence of consensus among the various Government agencies for dealing with the issue of spectrum re-farming, the DoT (Department Of Telecom) has sought the views of Telecom regulator, TRAI on whether incumbent operators should be allowed to retain any part of spectrum at the time of re-farming and licence renewal at the end of the 20-year licence period. An Empowered Group of Ministers headed by Finance Minister P Chidambaram on October 18 had deferred a decision on this contentious spectrum re-farming issue.

Re-farming involves redistribution of the highly efficient airwaves in the 900 MHz band, largely held by incumbents such as Bharti Airtel, Vodafone and Idea, and substituting them with frequencies in the 1,800 MHz frequency, when the permits of these companies come up for renewal beginning 2014. The move is to seek clarity on re-farming comes as Planning Committee Deputy Chairman, Montek Singh Ahluwalia last week cautioned the government on executing this controversial proposal, and urged the government to study the full implications as well as seek guidance from telecom regulator TRAI before endorsing the move to take back all spectrum held by incumbents in the 900 MHz band.

However, the Department of Economic Affairs (DEA) has raised concerns about this approach to permit operators to retain any part of the spectrum. On the other hand, TRAI, in 2010, had said that operators be allowed to retain up to 10 MHz of spectrum at the time of renewal. This was approved by the Government and was announced this year in February.

Moreover, the DoT has now sought TRAI’s view on specific points, including the feasibility and desirability of various re-farming options and the TRAI has been told to give full analysis of the various options before the next meeting of the Empowered Group of Ministers.

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