CNBC-TV18 | Aug 13, 2015

In a move that will come as a major boost for the telecom industry, the Cabinet today gave its approval to allow spectrum sharing between telecom companies.

n a move that will come as a major boost for the telecom industry, the Cabinet today gave its approval to allow spectrum sharing between telecom companies.

The move will allow the country’s large number of telecom companies to share spectrum amongst themselves more efficiently, leading to greater utilization and improved service quality.

A longstanding demand of the industry, the Cabinet nod comes soon after an inter-ministerial panel okayed the move following the recommendation of the TRAI.

“This will allow telecom companies to expand and grow further,” Rajan Matthews, Director General, Cellular Operators Association of India told CNBC-TV18.

He added that he hoped the government would come out with a favorable cap for sharing of spectrum, and said customers should expect the issue the issue of frequent call drops to be resolved partially after formal notification of the guidelines.

Agreeing with Mathew’s views, Kunal Bajaj, an independent telecom analyst said that telecom companies can improve services across various brands through expansion and optimum utilisation of capacity.

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