Telecom department approaches Trai to review existing spectrum caps
The department’s letter to Trai in this regard follows the recommendations made by the IMG tasked with examining financial stress in the telecom sector. The Telecom Department has approached the sector regulator Trai on review of existing spectrum caps - 50 percent within a band and 25 percent overall across all bands - applicable on the operators. “In light of the IMG report, TRAI is requested to provide views on whether existing applicable band-wise spectrum cap of 50 percent of total spectrum assigned in a band for an LSA and overall cap of 25 percent of total spectrum assigned in LSA across bands, should continue or needs review,” said the letter, seen by PTI. IMG noted that the matter “merits examination and inputs from regulator” and accordingly, the telecom department has decided to consult TRAI on the issue of spectrum limit. Relaxation in spectrum limit within a band, if it happens, may come as a relief to merging entities Idea Cellular and Vodafone, as some analysts have warned that the combined holding could breach spectrum caps in 900 Mhz band across 5 telecom circles - Maharashtra, Gujarat, Kerala, Haryana and UP West.
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