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Q. Common pool of spectrum for all telecom companies: Discuss the idea of creating common pool of spectrum.
Mar 01, 2017 Related to : GS Paper-3

Ans :

Introduction-

Recently the chairman of India’s largest telecom operator Bharati Airtel, Mr. Sunil Mittal has suggested the idea of creating a common pool of spectrum for all telecom companies. According to Mr.Mittal all telecom companies operating in India should create a jointly owned separate company to operate this spectrum pool. It could charge the operating telecom companies for use of the spectrum, in proportion to how much they use. The proposed move has biggest advantage of efficient utilisation of available spectrum.

Importance of creating a common pool of spectrum-

  • India’s telecommunication industry is overcrowded, there are many companies who have spare spectrum and some are short of spectrum. As in present arrangement companies use only the spectrum assigned to them. 
  • Hence companies which are short of spectrum would suffer network congestion and call drops, while companies with spare spectrum would be sitting on expensive spectrum won in an auction without earning money from it. Creating a common pool of spectrum would avert such scenario.
  • India’s telecom market is too intense and highly contested, with multiple players in each locality, the proposal of having common pool makes all the more sense. It will enables for efficient use of available spectrum based on demand from each operator.  
  • Similarly by having common pool, spectrum will be liberated from those companies which do not have use of it and it will be made available for those who are demanding. It will lead to perfect competition in the market.

Conclusion-

Since long time many companies are facing short of spectrum and the demand for spectrum gone up sharply. The growing technology and innovation in telecommunication has increased the demand of spectrum. In this scenario the idea of having common pool of spectrum will enable the efficient utilisation of spectrum. Hence telecom companies should come forward and make use of such novel idea.


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