Union Cabinet approves Spectrum Trading norms for telecom firms

The Union Cabinet has approved spectrum trading norms for harmonious spread of telecom services in the country.

These norms were approved based on the recommendations Telecom Regulatory Authority of India (TRAI) in order to increase emphasis on evolving more flexible and market oriented approach in Telecom sector.

Keyfacts

  • Henceforth, telecom companies can trade spectrum especially unutilised spectrum in all bands among themselves without taking any government permission.
  • The original validity period of spectrum assignment of telecom companies will not be altered due to spectrum trading as it is applicable to the traded block of spectrum.
  • However, the ownership right will remain with the Union Government. The seller and buyer entering into spectrum trading agreement will have to give an undertaking that they are carrying trading in compliance with rules and regulations.

Implications: Spectrum trading will allow better spectrum usages as the unutilised spectrum from one telecom service provider gets transferred to the other service provider who is facing spectrum crunch. It will also help to resolve the problem of fragmented spectrum holding in India and improve customer satisfaction and telecom services.

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Categories: Business & Economy Current Affairs 2017

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