Telecom Regulatory Authority of India (TRAI) has
recommended liberal and relaxed shareholding rules for service
providers provided the stakes do not lead to control of spectrum.
This means that no spectrum trading would not be permitted. TRAI has
provided its suggestions to the Department of Telecommunications
(DoT).
Further, as per the recommendations, new service
providers will be able to own more than 10% equity in more than one
operator in a service area. However, it will be permitted only if the
operator owns spectrum in just one company. This means that the
substantial equity/cross-holding requirement should only be linked to
spectrum holding.
For instance, a mobile service provider can own a
company that is operating fixed line services in the same service
area. This was not permitted under existing guidelines. At present,
an operator is allowed to own more than 10% equity in only one
company in a service area.
The regulator has also recommended that sharing of
the spectrum should be permitted for the new operators. Old operators
will have to pay the new price of spectrum determined through the
auction.
If accepted, this would be a major relief to the new
operators. Service providers are demanding that spectrum sharing
should be permitted as it would reduce the cost of providing services
and would increase efficiency.
