Spectrum trading guidelines submitted by TRAI last year has been approved by the union cabinet today, opening a window for the telecom players to scale up their services.
Once implemented, trading up to 25 percent of spectrum per operator in a circle and trading up to 50 per cent in all spectrum bands will be allowed.
Additionally, telecom companies are mandated to provide prior information to the DoT before forging trading agreements.
The cabinet also approved spectrum sharing norms in August that would allow telecom companies to share unutilized airwaves with other service providers in the same telecom circle. The move was taken in order to ease traffic congestion.
Together, these telecom norms will facilitate mergers and acquisitions to operate with ease in the competitive market.
The last spectrum auction on March 25 generated bids worth Rs1.1 lakh crore which is about 35 per cent higher that the base price. With the new guidelines in place, cost of spectrum is expected to reduce figuratively.