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Cabinet approves liberalization of spectrum at TRAI rates; RCom & RJio win

The Union Cabinet has cleared liberalization of spectrum at rates that were previously suggested by the Telecom Regulatory Authority of India (TRAI), a release by the Press Information Bureau (PIB) noted. This will allow the government to allocate its currently managed spectrum to telcos, wherein auction/market determined price is not available for that particular spectrum in a given circle. The move is expected generate around Rs 1,300 crore in revenue to the government. Liberalized spectrum will be provided at a provisional price (as suggested by the TRAI), and once the spectrum auctions are complete, the provisional charge will be adjusted with the auction determined price on a pro-rata basis, added the PIB report. What this means for telcos Liberalized spectrum will allow telecos to use any kind of technology to build and deliver mobile services under 3G and 4G standards. Besides this, telcos with liberalized spectrum will be allowed to test newer technologies and share/trade it with other operators, noted a PTI report. The previous government’s cabinet had decided that liberalization of spectrum would be done on the basis of market determined prices, in which telcos were also subjected certain limitations on usage under the license. However, recently some spectrum like the 800 Mhz band were not allocated in many states, and also remained unsold (during auction) in many circles. With the new guidelines in place, telecom operators can go ahead to liberalize its spectrum and trade/share it with other operators, without having to consult with government bodies for permission.…

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