The department of telecommunications (DoT) will notify next week the much-awaited rules to allow mobile phone companies to share spectrum among themselves, a top government official said on Friday.
The notification for spectrum sharing could be issued as early as Monday, or anytime during the week, Rakesh Garg, secretary, department of telecommunications, told reporters on the sidelines of a CII seminar on telecom convergence. The rules for trading of spectrum would come in by the end of the month, Garg said. The price for trading would be at the latest auction price. “The sharing guidelines have been prepared and sent to the minister for final approval and will be issued in a few days, probably by Monday, while trading guidelines will come by the month-end,” Garg said.
The much-awaited rules will allow mobile companies to better utilise available airwaves and will help in checking call drops. The norms are also likely to push consolidation in the telecom sector.
This would also help smaller mobile phone companies with excess spectrum to share with their larger peers, who have less frequencies, to improve their network and services, according to India Ratings and Research.
Less spectrum leads to congestion in call and internet traffic, resulting in poor service to consumers.
On the other hand, smaller players will now be able to offer high-speed internet services by sharing spectrum held by their larger peers, the ratings agency said.