The government on Wednesday announced a number of measures, including relaxation in spectrum norms in the telecom sector, assuring coal linkages to the power sector and according environmental clearances to a mega hydel project, to boost economic activity.
The decisions were apparently taken at the instance of the PMO to send a strong signal that the government wants to tackle the slowdown by fast-tracking decision-making.
The communications ministry on Wednes-day allowed 2G spectrum sharing and enhanced the prescribed limit of spectrum that operators can hold, which will benefit old players like Airtel and Vodafone. The norms for mergers and acquisition were also liberalised, and spectrum was delinked from licences.
The government has, however, not allowed sharing of 3G spectrum, spectrum trading and spectrum leasing.
Under a Telecom Commission decision, the prescribed limit of spectrum that GSM operators can hold has been hiked to 2x10 MHz (paired spectrum) MHz in Delhi and Mumbai, and 2x8 MHz (paired spectrum) in the rest of India. “The licensee can, however, acquire additional spectrum beyond that prescribed in the open market should there be an auction of spectrum,” said communications minister Kapil Sibal.
The prescribed spectrum limit for GSM players in all circles currently is 6.2 MHz. Bharti, BSNL, MTNL, BPL, Vodafone and Idea had spectrum beyond 6.2 MHz, and the new norms will help them.
Mr Sibal said a decision on spectrum pricing or a one-time charge for extra spectrum would be taken later.