The Department of Telecommunications’ guidelines for spectrum trading were approved by the Prime Minister earlier this week. The proposal for these guidelines was based on TRAI’s recommendations outlining issues relating to spectrum cap and maximum spectrum holding by telecom service providers. We look at some of the highlights in the norms laid out for spectrum trading. Initial considerations: - Spectrum trading is only allowed between two service providers, but only the outright transfer of right of use of the spectrum will be permitted. Trading spectrum, or trading a block of spectrum will not change the original validity period of the spectrum. - Any dues to be paid on the spectrum traded will need to be paid by the buyer, in case the seller hasn’t. The Government will reserve the right to recover dues, if any, from the buyer or seller, jointly or severally. If only a part of the spectrum is sold, both, the buyer and the seller, will be required to pay the remaining installments of payments, depending on the amount of spectrum held by each. - The seller should have cleared its Spectrum Usage Charges (SUC) and its instalment of payment (in case seller had acquired the spectrum through auction and opted for deferred payment) by the effective date of trade. - Frequency swapping or reconfiguration from within the assignments made to licensees will not be treated as spectrum trading. The NIA (Notice Inviting Applications) conditions will govern frequency swapping and reconfiguration. - Buyer should be in compliance of…
