NEW DELHI : Telecom Regulatory Authority of India released recommendations on the guidelines for trade of spectrum in the country wherein only outright transfer of airwaves have been permitted from the seller to the buyer.
While no permission will be required from the government for trading of spectrum, the regulator has mandated that both the seller and the buyer will have to inform the licensor six weeks before the trade takes place.
Only that spectrum will be allowed to put up for trade for which the companies have paid a market determined price, and trade of spectrum will be on a pan-licensed service area basis, the regulator said.
While the transaction will be between two parties–buyer and seller—the regulator has provided that the seller has the flexibility to choose the prospective buyer of its spectrum through mechanism such as tender or auction. In 800 Mhz, spectrum trading will be allowed in the block size of 1.25 Mhz, in 900 Mhz and 1,800 Mhz at 200 Khz, in 2,100 Mhz at 5 Mhz, in 2,300 Mhz and 2,500 Mhz at 20 Mhz.
A non-refundable transfer fee of 1% of the transactional amount or 1% of the prescribed market price, whichever is higher shall be imposed on all spectrum trade transactions, the regulator said. -Cogencis
Airtel seeks cut in bank guarantees
Telecom major Bharti Airtel has approached the Department of Telecom to reduce the bank guarantees it had submitted for the upcoming spectrum auction, indicating a toning down of its bids for the airwaves.
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