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The Department of Telecom is planning to approach sector regulator TRAI for its recommendations on spectrum trading, which can allow even private entities to sell or lease airwaves for services.
"We will write to TRAI within a week for their recommendations on spectrum trading," a senior government official told PTI.
This is for the second time the regulator would be asked to work on spectrum trading.
The Telecom Regulatory Authority of India (TRAI) had done consultation with interested people in 2010 and later concluded that the country was not ready to go for trading of airwaves.
The regulator was of the opinion that allowing spectrum trading might result in anti-competitive conduct through consolidation or hoarding of spectrum or an incumbent may debar newcomers from providing service by buying out the spectrum required for services.
The government has agreed to allow operators to share spectrum but it has not decided on trading.
The spectrum trading provision can help companies who have to trade their unutilised airwaves frequencies with other service provider for commercial or strategic gains.
Some countries like Australia, Canada, New Zealand, and Guatemala have permitted spectrum trading in the secondary market as an additional means of spectrum distribution.
