The Union Cabinet on 9 September 2015 approved guidelines for spectrum trading between two telecom service providers.
Under the approved norms, spectrum trading will be allowed between two access service providers in 800 MHz/1800 MHz band. Till now, a licensee had the sole authority to use spectrum as it was not tradable.
As per the DoT norms, spectrum assignment is made for a period of 20 years to a licensee. During this period, some operators are able to acquire subscribers and grow at a faster rate as compared to other operators.
This results in the spectrum lying unutilised with some of the players while other operators face spectrum crunch as spectrum is a scare resource.
Hence, the decision to allow spectrum trading is expected to result in the improvement of the quality of services and also helps in addressing the issue of call drops (calls that are cut off due to technical reasons).
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