Government may allow telecom companies to share 2G spectrum with riders - Economic Times

NEW DELHI: The government is set to allow telecom companies to share 2G spectrum with each other as long as their combined holding is not more than 50% of the total airwaves allotted in that region, a move that will ease the pressure on operators struggling with congested networks and possibly reduce the bidding amounts in the upcoming auctions.

Spectrum sharing will be allowed only between two telcos holding 2G spectrum in the same service area, but not between operators holding airwaves in two separate circles, the draft rules show.

Bandwidth sharing is also not allowed between operators holding 3G airwaves. Operators won't also be allowed to lease their spectrum but only share it.

"These are pro-industry measures which will help efficient utilisation of spectrum in the country," said Prashant Singhal of EY. The telecom department has sent the draft rules for a legal view before finalisation.

However, some clauses, such as the one of spectrum usage charge (SUC), disappointed observers. Both operators sharing the resource will have to pay SUC on the 'jointly held quantum', a clause which could make the arrangement expensive, said experts.

"If an operator X holds more 4.4 MHz of spectrum, shares 4.4 MHz of spectrum of another operator Y then both X and Y will be liable to pay spectrum usage charges applicable to 8.8 MHz of spectrum with effect from the date of such permission," the draft guidelines say.

Under the current cascading spectrum usage charge, a sharing facility even between two telecom operators with the start-up spectrum (4.4 MHz/2.5 MHz) would attract the highest levy of 8% of their adjusted gross revenue.

Copyright © 2013 Times Internet Limited. All rights reserved.

via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGM3HPSyrZloOq01WR4KGvwD8fRSg&url=http://economictimes.indiatimes.com/news/news-by-industry/telecom/government-may-allow-telecom-companies-to-share-2g-spectrum-with-riders/articleshow/27610493.cms

Put the internet to work for you.

via Personal Recipe 2598265

Posted in: Tablets 4 Kids