What is Spectrum Trading?

The Government of India on 9,September cleared the Spectrum Trading norms for the Telecom Industry. This is the most awaited policy for which the companies are waiting. The spectrum trading will be available in all bands and help in increasing the efficient use of radiowaves by enabling one telecom operator to share un-utilized spectrum with other operator who needs it.
However, the operator has to tell the DoT for the sharing of spectrum with in 45 days, instead of taking approval from the Department.
Salient Features:

1. Only the spectrum of specific bands auctioned in 2010 or after will be allowed to trade.
2. It will allow small operator with large subscriber to get spectrum from bigger operator with low subscriber in an area or a circle.
3. The buyer has to give 1% trading fee that will be calculated on the market price or auctioned price which is higher.
4. Trading shall be permitted only on pan-Licsensed Service Area(LSA) basis.
5. Trader must have cleared all its dues before sharing its spectrum. If it has been established that Licensees has breached the norms and the Licensor has order for revocation/termination, it will not be allowed to trade.
6. It also provides Exit opportunity for the operator who have not been able to build scale in India and other players to get more spectrum for its large subscriber base.
7. It will enable Optimum utilization of spectrum.
8. It improves the quality of service and reduces the Call drop mess.
9. It is hoped that this will help in releasing the Modi Government projects like Digital India, Smart City, E-governance etc.