Telcos can now trade in Spectrum!

India’s Telecom Minister Ravi Shankar Prasad announced that telecom operators would now be able to sell radiowaves to other service providers.

"Cabinet has approved spectrum trading today. Telecom sector has been demanding it for optimum utilisation of spectrum," said Telecom Minister Ravi Shankar Prasad said.

Till now, the Indian government had allowed to allocate spectrum to telecom firms through auctions only.

The trading will enable efficient use of radiowaves as few telecom operators had a low subscriber base or unutilised spectrum lying with them.
"The ownership right will be of government of India. That right of trade he can trade with someone else fully between two service providers. For entering in trading agreement, telecom operators will not require prior permission from government but the company will have to inform licence issuing authority 45 days before entering into trading agreement,” said Prasad.

The trading is also expected to indicate market rate of radiowaves. At present it is determined only through auctions conducted by the government.

"Auction purchased spectrum can be straight away go for trading. The buyer will have to pay 1 per cent trading fee which will be calculated based on market rate or previous auction price whichever is higher," Prasad said.

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