India - DOT may allow spectrum sharing

NEW DELHI : In a major development, the government is considering allowing spectrum sharing between two mobile operators, a move that could prove to be a win-win situation for both existing as well as new telecom players. New telecom players may find it difficult to roll out services with only 4.4 MHz of spectrum and compete with existing players who have been allocated 10-12 MHz of scarce spectrum. Spectrum is radio frequency required by cellular operators to offer wireless mobile services. If allowed, two new players may join hands to combine the initial spectrum taking it to 8.8 MHz and this would not only help in reducing the infrastructure costs but also result in better quality of services with less number of subscribers and more spectrum. Minister of State for Communication and IT, Jyotiraditya Scindia, has convened a crucial meeting tomorrow of senior officials in the Department of Telecom (DoT) to consider the proposal of sharing of spectrum among other things. According to sources, the proposal would also help the existing mobile operators who have been seeking additional spectrum with the increase in number of subscribers but are unable to get due to its scarcity. Asked whether DoT may also consider trading in spectrum as allowed in some of the developed countries, sources close to development said since the initial 4.4 MHz of spectrum is given free of cost with the licence, it may not be possible immediately to go for trading.