The day 2 of Wireless Spectrum Policy, Open House by TRAI saw discussion on M&A, Spectrum Trading and allo9tment of further spectrum for new entrants. You can read proceedings of Day-1 here. Here is an excerpt from the same.
Telecom M & A procedure likely to get diluted – There was near consensus on dilution of M&A norms. Most operators agree that the sector needs to consolidate and issues related to adequate competition should be left to the market forces. New entrants also seem to have accepted the changed market realities. However, there was disagreement on the surplus spectrum issue arising out of M&A
Trading of 2G Wireless Spectrum – Divergent views on spectrum trading, though most agree on spectrum sharing [Yes, that’s correct] as a way to reduce wastage from the large number of guard bands due to market fragmentation. Spectrum trading is likely to be more complicated to resolve but opinion was being titled towards levy of a transfer charge payable to the government for every MHz of spectrum change / traded.
Spectrum Pressure on New Entrants ? New entrants allotted 4.4 MHz of start-up spectrum seem to be facing some pressure on spectrum due to aggressive subscriber addition without looking at the bottomline. New entrants, however, are wary of auction for additional spectrum, given the stronger business case for incumbents.
TRAI will come up with its own recommendations shortly. But you know by now, what to expect 🙂