Indian telecoms regulator Trai has proposed relaxing restrictions on spectrum ownership to help improve the financial health of the struggling industry.
Trai has suggested that the current cap on owning more than 50% of a given spectrum band in a given telecoms circle be abolished, the Economic Timesreported.
This cap would instead be replaced with a cap on holding more than 50% of the combined spectrum in the 700-MHz, 800-MHz and 900-MHz band in a given circle.
In addition, Trai has suggested raising the overall spectrum cap on owning more than 25% of the allocated spectrum in any given telecoms circle up to 35%.
Trai has made the suggestions as part of a broader proposal for providing relief to the debt-stricken Indian telecoms sector, which is being drawn up by the regulator at the request of the Department of Telecom. The proposal to raise the caps was developed following consultation with the industry.
With the Indian telecoms sector going through a wave of consolidation, raising the spectrum caps could help expedite this process. The proposal would allow Idea Cellular and Vodafone India, which are merging in a deal set to create India's largest operator, to keep all their combined spectrum holdings.