Spectrum is a scarce resource, made even more scarce by the difficulties governments have in refarming it. Efficient use of spectrum should be a high priority. It is obvious that allowing firms to use market mechanisms to use the resource more efficiently is a good thing. The question is why this is not done. One part of the answer is the need of governments to maximize revenues from spectrum.
Now India has broken the logjam. Hopefully others will follow.
The government has allowed sharing of all spectrum available at present, and similar norms will apply to radiowave frequencies in new bands which will be allocated in future.
The guidelines issued by the government allow telecom operators to share even traded spectrum, which means a company can sell the right to use spectrum to other company and later share the same spectrum. “All access spectrum, including traded spectrum, shall be sharable provided both licensees are having spectrum in the same band,” the guidelines issued by the Department of Telecom said.
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