Lok Sabha Question No. 540 (STARRED), answered on 2018-04-04
Subject: Cap on Spectrum Holding
Ministry: COMMUNICATIONS
Asked by: PONNUSAMY VENUGOPAL

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA STARRED QUESTION NO.540 TO BE ANSWERED ON 4 TH  APRIL, 2018

## CAP ON SPECTRUM HOLDING

*540. DR. P. VENUGOPAL:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether the Government has approved relaxing the cap on spectrum holding by the Telecom Service Providers (TSPs) and if so, the details thereof;
- (b) whether  the  Government  has  given  any  options  to  TSPs  to  extend  the  time period for payment of spectrum bought in auction from the present 10 years to 16 years and if so, the details thereof;
- (c) whether the aforementioned new spectrum cap will facilitate consolidation in the telecom market and if so, the details thereof; and
- (d) whether the said spectrum cap is likely to encourage more participation in future spectrum auction and if so, the reaction of the Government thereto?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a) to (d) A statement is laid on the table of the House.

## STATEMENT TO BE LAID ON THE TABLE OF LOK SABHA IN RESPECT OF PART (a) to (d) OF LOK SABHA STARRED QUESTION NO. *540 FOR 4 TH  APRIL, 2018 ON 'CAP ON SPECTRUM HOLDING'.

(a) Yes,  Madam.  The  Union  Cabinet  considered  the  recommendations  of  InterMinisterial  Group  (IMG)  on  'Stressed  assets  in  Telecom  Sector'  and  approved  the proposal  of  relaxing  the  cap  on  spectrum  holding  by  the  Telecom  Service  Providers (TSPs) as follows:

-  The overall spectrum cap be revised from 25% to 35%.
-  The intra-band cap be removed. Instead, there would be a cap of 50% on the combined spectrum holding in the  sub-1  GHz  bands  (700  MHz,  800  MHz  and 900 MHz bands).
-  There  would  be  no  cap  for  individual  or  combined  spectrum  holding  in  above 1 GHz band.
-  The  revised  spectrum  cap  limits  may  be  revisited  after  Final  Acts  of  World Radiocommunication Conference (WRC) 2019.

(b) Yes,  Madam.  The  Union  Cabinet  considered  the  recommendations  of  InterMinisterial  Group  (IMG)  on  'Stressed  assets  in  Telecom  Sector'  and  approved  the proposal  of restructuring of deferred  payment  liability  of  spectrum  auction.  The Government has given a one-time option to TSPs to extend the period of payment of instalments in respect of spectrum acquired through auction. The TSPs can opt for a maximum of 16 instalments (as against previous 10). The restructured instalments will be based on the principle that  the  Net  Present  Value  (NPV)  of  the  'payment  due'  is protected.

(c) & (d) Yes, Madam. New spectrum cap will facilitate consolidation in the telecom industry  through  merger  and  acquisition,  and  spectrum  trading  and  sharing.  It  is expected to promote competition in the market. Revised spectrum cap will increase the spectrum holding capacity of TSPs which will allow them to acquire additional spectrum in  order  to  provide  5G  services.  This  would  encourage  more  participation  in  future auction.

***************