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TRAI Recommends Outright Spectrum Transfer, No Leasing, 2 Years Lock-In

Ahead of the 2G spectrum auctions, the Telecom Regulatory Authority of India (TRAI) has released (pdf) its final recommendations on spectrum trading guidelines, which allows telcos to buy or sell spectrum. The organization notes (pdf) that this recommendations were formulated after analyzing the draft guidelines submitted by the Steering committee which comprised of senior TRAI officers and representatives from various telcos like Airtel, BSNL, Aircel, Idea, Vodafone, Reliance Jio, RCOM and others. TRAI has earlier recommended that mobile operators should be allowed to trade spectrum bought through auctions, to which the Department of Telecommunications (DoT) had provided its in-principle approval in October 2013 and had requested TRAI to provide recommendations to issue detailed guidelines. These guidelines are expected to allow major telcos acquire more spectrum in the country while providing an exit route to struggling telcos. Telecom secretary M F Farooqui told PTI yesterday that the government also plans to release the much-awaited merger and acquisition guidelines next week. TRAI Recommendations - Only Outright Transfer Of Spectrum Permitted: TRAI has proposed permitting only outright transfer of spectrum i.e. the ownership should be transferred to the buyer. Spectrum trading should not alter the original validity period of the allotted spectrum. All pending dues of the seller will lie with them till the transfer date and will be transferred to the buyer after the trade has been done. - No Spectrum Leasing: Spectrum leasing should not be permitted right now and spectrum trading should be permitted only on the full licensed service area i.e. spectrum cannot be traded for a part of the licensed service…

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