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McLean Foster, PwC in race to guide Trai on spectrum

Around 10 global consulting firms with expertise in spectrum trading have offered to share their know-how with the Telecom Regulatory Authority of India

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Regulator is seeking consultancy on allowing spectrum trading

NEW DELHI: Around 10 global consulting firms with expertise in spectrum trading have offered to share their know-how with the Telecom Regulatory Authority of India (Trai), it is learnt.

The regulator last month sought expressions of interest (EoIs) from consultants/ consulting firms with global experience to guide it on the desirability and timing of introducing spectrum trading in India.

The eligibility criteria include prior consultancy on spectrum trading for telecom services in at least two countries, of which at least one must be from a list of five — the US, the UK, Canada, Australia and New Zealand.

The EoIs had to be submitted to Trai by November 14.

Trai officials refused to divulge the names. However, sources said US-based McLean Foster & Co and PricewaterhouseCoopers (PwC) are among those who have sent in EoIs to the regulator.

McLean Foster had given consultancy to Canada for review of spectrum policy, and to the telecom regulatory authorities of Liberia, Afghanistan and Mozambique on similar issues.

Another well-known consulting firm in the area of spectrum trading is Indepen, also from America. Indepen had advised UK’s telecom regulator OfCom on spectrum trading a few years ago. However, it could not be ascertained if Indepen has sent in an EoI to Trai.

Spectrum trading is not permitted in India yet. The countries that currently allow spectrum trading are the US, Canada and Australia.

The process of selecting the consulting firm, after a process of shortlisting, will take two more weeks, a Trai official said. The regulator wants to be ready with the spectrum trading scenario as it feels the Department of Telecommunications (DoT) would soon seek its recommendations on the issue.

Trai wants a consultant for assessing the desirability and timing of allowing spectrum trading in India, modes of spectrum trading suitable in India and licensing issues, etc. The regulator had earlier proposed the concept of spectrum trading to the government, but the DoT had rejected it in 2006.

Spectrum is a scarce natural resource, crucial for offering quality telecom services, and the telecom regulator has time and again hinted at the desirability of introducing spectrum trading in India. It had indicated this while announcing its recommendations on mobile virtual network operators (MVNOs) in August. An MVNO is a licensee in any service area that does not have spectrum of its own for access service, but can provide mobile phone service to its own customers through an agreement with the licensed mobile network operator.

Even the DoT mentioned spectrum trading/ sharing in its recent guidelines for 3G (third generation) telecom services. The guidelines said, “Trading/ sharing of spectrum, if any, shall be governed by policy as may be determined by the Government of India.”

m_nivedita@dnaindia.net

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