Home
Telecom
Telecom News
Cabinet Approves Increasing Spectrum Cap for Telecom Operators

Cabinet Approves Increasing Spectrum Cap for Telecom Operators

By Reuters | Updated: 8 March 2018 12:13 IST

Highlights

The cap has been increased from 25 percent to 35 percent
Cabinet has also removed the intra-band cap
Changes should help telecom players trade airwaves

The cabinet approved on Wednesday an increase to the cap on airwaves that a mobile operator can hold to 35 percent from 25 percent, the federal government said in a statement.

Based on recommendations of India's telecoms regulator and the Telecom Commission, the cabinet also removed the intra-band cap but said mobile carriers would have to adhere to a 50 percent cap on combined airwaves holdings below 1GHz bands.

The changes will allow telecoms players to trade airwaves and potentially improve participation in spectrum auctions.

The entry of Reliance Industries' telecom firm Jio disrupted the sector in 2016 with free voice and cut-price data plans, driving consolidation in the industry and forcing out smaller players.

Bharti Airtel is India's top mobile carrier, while Vodafone Group's India unit and Idea Cellular are merging their operations.

New Delhi also decided to allow telecom network operators to pay for pricey spectrum in 16 instalments instead of 10.

Telecom industry lobby group, the Cellular Operators Association of India (COAI), welcomed the changes.

"The spectrum caps will help the consolidation process and debt extension will give some immediate cash flow relief," COAI Director General Rajan Mathews said. But he added that the sector was still grappling with excessive levies and taxes.

© Thomson Reuters 2018

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.