Thereafter, the government shall be free to allocate it to other users. The 

users who have not reached the levels at a) above can also acquire IMT 2000 

spectrum but in that case they would not be permitted to acquire the amounts 

reserved if the levels decided earlier exceeded after IMT 2000 spectrum 

acquisition. 

5.10 Spectrum 

Cap 

In order to prevent one Service Provider from hoarding spectrum, it would be 

necessary to impose a spectrum cap for allocation. Imposition of a spectrum 

cap will: 

ensure that no single organisation can dominate the market by 

limiting the amount of spectrum that can be awarded to an 

individual Service Provider in a specific area.   

ensure that no Service Provider can obtain an unfair advantage 

from having entered the market first, and 

provide clarity to the Service Providers so they can plan the roll 

out of their networks. 

The main issue for consideration is what should be this limit  if such an 

approach is followed, keeping in mind the existing and new services. 

However, the allocation policy to reach this cap could be competitive or non 

competitive based on the allocation method discussed earlier. This cap could 

be relevant only to allocations in the 800 MHz, 900 MHz 1800 MHz or IMT 

2000 band. The issues pertaining to spectrum cap in case of Mergers & 

Acquisition is discussed in the next chapter. 

5.11  Issues for spectrum allocation 

(i) 

How much minimum spectrum (refer approach (I) and (II)) in section 

5.4) should each existing operator be provided? Give the basis for 

your comments. 

(ii) 

At what stage the amount of spectrum allocation to new entrants be 

considered in the 800 MHz / 900 MHz / 1800 MHz frequency 

bands? 

(iii) 

Should spectrum be allocated in a service and technology neutral 

manner? 

(iv) 

What should be the amount of cap on the spectrum assigned to 

each operator? 

(v) 

What procedure for spectrum allocation be adopted for areas where 

there is no scarcity and in areas where there is scarcity? 

(vi) 

Which competitive spectrum allocation procedure (Auction / Beauty 

Contest) be adopted in cases where there are scarcity? 

(vii)  Should we consider giving some spectrum in 900 MHz band to 

fourth CMSPs? 

(viii)  Comments of stakeholders are invited on the minimum blocks such 

as 2 X 2.5 MHz / 2 X 5 MHz of additional spectrum to be allocated 

to existing service providers in situations where IMT 2000 band is 

opened as well as in situation where it is not opened. Additionally, 

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