Legislative and regulatory update – May 2008

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Telecoms

The Department of Telecom-munications accepted a recommendation on 1 April from the Telecom Regulatory Authority of India, which will allow telecoms service providers and infrastructure providers to share active infrastructure such as antennas, cables, radio access networks, transmission systems and other equipment used to transmit mobile calls.

The move could significantly lower costs, particularly for new industry entrants which may be able to access existing infrastructure for a fee, rather than developing entirely new networks. This could, in turn, lead to lower call rates.

The revised guidelines allow service providers to share infrastructure on the basis of mutual contractual agreements, but sharing allocated spectrum is not permitted.

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