DoT must answer these queries if spectrum sharing is to benefit telcos

New Delhi: The Department of Telecom is gearing up to allow telecom service providers to share spectrum but this move raises several questions which need to be answered before a comprehensive spectrum sharing policy is put in place.

In common terminology, spectrum sharing means different operators are energizing spectrum in one service area using the same equipment. As of now, distinct operators operate in distinct bands, energizing spectrum using their respective equipment.

If sharing is allowed, it will immediately enhance capacity of spectrum. This means, operators can use spectrum to offer much better quality of service for data as well as quality.

More from Business

Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution

[caption id=“attachment_703204” align=“alignleft” width=“380”] If sharing is allowed, it will immediately enhance capacity of spectrum. This means, operators can use spectrum to offer much better quality of service for data as well as quality.Reuters[/caption]

In an internal note, DoT has said “Sharing of spectrum will be permitted without any additional one-time spectrum charges between the telecom service providers who have paid one time spectrum charge for their existing spectrum holding above 4.4 mhz (GSM)/2.5 mhz (CDMA) as per orders issued from time to time”

Both service providers shall have to pay spectrum usage charges at the slab rate applicable, as prescribed by DoT from time to time on the combined spectrum holding, the DoT note adds.

Impact Shorts

More Shorts

Chennai Ranks #1 in Challan Checks: ACKO Insights for Smarter Car and Two Wheeler Insurance Decisions

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

But several issues need to be addressed if spectrum sharing is to benefit telcos:

1. Will sharing be allowed across all bands or will it be restricted to one band? For example, can telcos holding 1800 mhz spectrum and those holding 900 mhz spectrum in the same circle also share? This needs to be clarified.

2. Spectrum sharing will have a serious implication for 2G spectrum holders because of one-time fee complications. Last year, the Government levied one-time fee for telcos where they have to pay for all spectrum beyond contracted amount of spectrum. They have to pay for all spectrum beyond 4.4 mhz for remaining period of licenses prospectively. Also, they have to pay retrospectively for spectrum beyond 6.2 mhz from July 2008 till December last year. This one-time payment issue remains contentious.

3. None of the 3G operators hold pan-India spectrum and unless the Government allows swapping of 1900 mhz spectrum which it has reserved for refarming of 800 mhz with 2100 mhz, there won’t be any benefits for 3G operators from spectrum sharing. If swapping were to be allowed, it would release 15 mhz of additional spectrum.

4. Unless permission to share spectrum is also followed by permission for intra circle roaming (which is currently sub-judice), again 3G operators will gain nothing from the whole exercise.

The DoT note says spectrum sharing will be allowed initially for 5 years, extendable by another 5 years. Also, telcos will need specific permission to enter into spectrum sharing arrangements by DoT.