Government nod to relief for stressed telecom sector

Paving the way for consolidation in the telecom sector, the Union Cabinet on Wednesday approved an increase in overall spectrum holding limit to 35 per cent. As per the current rules, no mobile service provider can hold more than 25 per cent spectrum in a service area and more than 50 per cent in a frequency band.

A 50 per cent cap will now be on combined spectrum holdings in sub 1 GHz bands like 700 MHz, 800 MHz and 900 MHz. The biggest beneficiaries will be Vodafone and Idea Cellular, which are in the middle of a merger, and Reliance Jio.

There was no ceiling limit for spectrum holding in the above-1 GHz band. Besides, the Cabinet has also approved an extended tenure for repayment of spectrum bought in auctions to 16 years from 10 years.