DoT mulls lifting bar on spectrum sharing for 3G services

The Department of Telecommunications may reconsider its decision to bar spectrum sharing for 3G services following changes that have come into effect under the new licencing rules, under which any technology can be deployed.

In light of recent policy decisions, "this condition (barring of 3G spectrum sharing) needs reconsideration / revisit" by the Telecom Commission, an an official source told news agency PTI.

On 15 February 2012, the DoT had decided that "spectrum sharing will not be permitted among licensees having 3G spectrum.''

The government has allowed sharing among telecom companies holding liberalised airwaves for only spectrum purchased through auction in November 2012 and beyond. The auction condition said that telecom operators can use any technology for providing telecom services in the liberalised spectrum.

Telecom tribunal TDSAT also passed a judgement in April that allowed Airtel, Vodafone and Idea Cellular to use each others' 3G spectrum for services (See: Telecom tribunal allows 3G roaming pacts).

Telecom operators that were allocated spectrum at the 2001 price of Rs1,658 crore and after 2001 through administrative process were given option to liberalise their spectrum by paying a one-time spectrum fee equivalent to market rate determined through auction.

DoT sources said that telecom operators holding non-liberalised spectrum may be allowed by incorporating a condition of depositing bank guarantee equivalent to the amount they are required to pay for liberalising spectrum.

The matter of DoT levying the one-time spectrum fee is sub-judice.

As per initial demand raised by the DoT, state-owned BSNL has to pay around Rs6,912 crore, Bharti Airtel Rs5,201 crore, Vodafone Rs3,599 crore, MTNL Rs3,205 crore, Idea Cellular Rs2,113 crore, Aircel Rs1,365 crore, Loop Mobile Rs606 crore and Reliance Communications Rs173 crore.