DoT asks Trai to review spectrum management recommendations

Trai recommended 'Spectrum Management and Licencing Framework', in which it had said that consequent to the merger of licences in a service area, the total spectrum held by the resultant entity post-merger shall not exceed 12.4 MHz for GSM technology, or 10 MHz in case of CDMA technology

PTI | August 23, 2011



The Telecom Ministry has asked telecom regulator Trai to review its recommendations on the timeframe for service providers to surrender excess spectrum in their possession and the rationale behind a spectrum transfer charge in case of the merger of two entities.

"Department of Telecom (DoT) has asked Trai to review its recommendations on the timeframe for surrendering excess spectrum and the rationale behind a spectrum transfer charge during the merger of two companies," the DoT said in a communication to the Telecom Regulatory Authority of India (Trai).

In May, Trai had gave its recommendations on a 'Spectrum Management and Licencing Framework', in which it had said that consequent to the merger of licences in a service area, the total spectrum held by the resultant entity post-merger shall not exceed 12.4 MHz for GSM technology, or 10 MHz in case of CDMA technology.

The authority had separately recommended that excess spectrum beyond 6.2 MHz/5 MHz being held by the resultant entity, pursuant to merger/acquisition, would be liable to be charged at current market price.

Furthermore, Trai had suggested that if, as a result of the merger, the total spectrum held by the resultant entity was beyond the prescribed limits, the excess spectrum must be surrendered.

The resultant entity from a merger or acquisition would have the discretion to choose the band to surrender spectrum beyond the ceiling level.

Consequent to the merger of licences in service areas, the resultant entity will entitled to the total amount of spectrum held by the merged entities. However, this is subject to the condition that the licencee will surrender any excess spectrum held by it, as per the allocation cap stipulated for GSM and CDMA technologies, within a period of three months.

In case of a failure to meet the spectrum allocation criterion within three months, the post-merger licencee shall surrender the excess spectrum, if any, failing which it may be treated as violation of terms and conditions of the licence agreement and appropriate action will be taken.

Furthermore, Trai had recommended that a spectrum transfer charge, at 5 per cent of the difference between the transaction price and the total spectrum price, will be payable by the merged licencee within a period of three months after the merger is approved by the DoT.

Trai made the recommendation on the premise that service providers were given contracted spectrum at a price less than the market rate.

Comments

 

Other News

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter