Inter-ministerial panel Telecom Commission has in-principle approved Trai's recommendation on determining spectrum holding limits and sought suggestions from the sector regulator to implement it in future auctions.
“Telecom Commission discussed spectrum cap recommendation of Trai and in-principle agreed to the recommendations. It has sought regulator's view on implementing it in future auctions,” a Government official told the news agency.
The spectrum cap, the limit of radiowaves a telecom operator can hold for providing wireless services, is 50 per cent in a spectrum band identified fit for transmitting mobile signals and 25 per cent of the total such spectrum assigned in a telecom circle.
The Telecom Regulatory Authority of India (TRAI) in July had said that unallocated telecom spectrum should also be counted while determining limit of radiowaves that a company can hold a suggestion if implemented would widen capacity of telecom operators to hold more spectrum.
According to telecom sector experts, Trai's rules will improve other operator's ability to buy more spectrum which will lead to not only decongesting networks but also help in facilitating much-needed market consolidation.
“The DoT will write to Trai within a week to seek its suggestion,” the official said.