Thursday, October 15, 2015

Spectrum Sharing - India

Exponential growth in consumer demand for wireless services is driving the evolution of wireless networks towards high speed data networks. But with most spectrum already allocated, it is becoming exceedingly difficult to find vacant bands to either deploy new services or to enhance existing ones. It has also been found out that a significant amount of spectrum remains idle at any given point of time and location. To issue the problem of call drops and ease telecom congestion, Government of India on August 12, 2015 allowed Telecom operators to share airwaves in the same band by giving approval to the guidelines of Telecom Regulatory Authority of India (TRAI). This will also help to improve spectral efficiency and Quality of Service.
 
Some of the important guidelines are as follows:
1) Spectrum sharing would be allowed only when both the licensees are having spectrum in the same band. 
2) Spectrum usage charge will be levied on the entire spectrum holding in the particular band and spectrum including traded spectrum will be shareable. 
3) Spectrum usage charge of each licensees post sharing shall increase by 0.5% of Aggregated Gross Revenue (AGR).
4) Both licensees sharing the spectrum will have to give a prior intimation for sharing the right to use spectrum at least 45 days before the sharing starts. 
5) Sharing will be permitted where both entities are having administratively allotted spectrum where one entity has spectrum acquired through auction (liberalized spectrum) and other entity has spectrum allotted administratively, sharing shall be permitted only after spectrum charges are paid for liberalizing the administratively allotted spectrum. Spectrum sharing is an alternative of auction to companies who need more airwaves for expanding their wireless bandwidth to deliver high speed internet services.

Spectrum sharing is taken as a welcome move by telecom operators across the country. Telecom operators like Uninor who have not won any spectrum in February 2015, will benefit by this decision.  After the government allowed spectrum sharing, Reliance Communications (RCOM) and Reliance Jio Infocomm announced on 14th August 2015 that they are set to ink a pact that will enable Jio to offer fourth generation (4G) services over the 800 MHz band across 10 circles. The airwaves sharing pact will allow Reliance Jio to access 10 MHz of contiguous 4G bandwidth in Mumbai, UP-East, Orissa, Madhya Pradesh, Bihar, Assam, Northeast, Haryana, Himachal Pradesh and Jammu & Kashmir. Reliance Communications too will benefit as it will gain access to Jio's 4G network in the 10 circles at virtually zero incremental capex costs.


Parth Vora
Batch-2017
Symbiosis Institute Of Telecom Management

No comments:

Post a Comment