The Union Cabinet on Wednesday approved the much-awaited spectrum trading norms for telecom companies. To put this scarce resource to maximum use, Communications and IT Minsiter Ravi Shankar Prasad announced various reforms on the same.
Telecom minister Ravi Shankar Prasad said, "Telcos could now enter into spectrum trading by informing the Government 45 days in advance". He further added that "a total of 1percent trading fee will be levied on the traders".
He added, "Spectrum trading will be allowed only between two access service providers only outright transfer of right to use the spectrum from the seller to the buyer shall be permitted."
The spectrum-owned by the government, can now be traded between companies, given they comply with all the rules and regulations he added.
The guidelines for spectrum trading arising from the recommendations of the Telecom Regulatory Authority of India (TRAI) are expected to transform the spectrum usage in the telecom sector.