Wednesday 10 January 2018

Telecom Commission decides to relax spectrum holding limits

While also extending the payments tenure for auctioned airwaves from 12 years to 16 years, and lowering the interest rate on penalties on outstanding dues of telcos from 14% to 12%, the Telecom Commission has now decided to relax spectrum holding caps, giving a boost to M&As and spectrum sale, as carriers try to sell assets, including airwaves, to repay debt.


The Commission also supported TRAI’s suggestion to increase the overall airwaves holding limit to 35% from 25%. The changes in spectrum holding caps as well as in the payments tenure will have to be approved by the cabinet

It supports regulator’s proposal to do away with the 50% cap on intra-band spectrum holdings of telcos. Instead, the TC agreed to impose a separate 50% cap on the combined spectrum holdings in the 700 MHz, 800 MHz and 900 MHz bands (sub-1GHz bands).

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