New Telecom Bill-7: Spectrum as an Asset

Continued from the earlier article

One of the key elements of regulation is the “Spectrum”.

 This law adds a new “Asset Class” called Spectrum which is ” a range of frequency” of radio/electromagnetic waves.

Spectrum will be an exclusive asset of the Government and can be licensed.

The licensee will have the contractual rights of exploitation of the spectrum and this “Right” is having a value which should appear in their balance sheets.

If the licensing is for a period, the value should be depreciated over the period as a deferred expenditure.

The Government is recognizing “Re-farming” of the spectrum so that a licensed frequency range can be used for purposes other than for which it was earlier licensed. Government may also harmonize the frequency range for efficient use of the spectrum. (rearrangement of the frequency range). Government may also re-assign the spectrum allocation to improve efficiency.

Sharing, trading , leasing of the spectrum is also permitted under law.

However in case of insolvency the spectrum may revert to the Government under certain conditions of default.

All these provisions add a new dimension to valuation of intangible assets to which class Spectrum also belongs to. This is interesting and has extendibility to data valuation which is being promoted by the undersigned.

Naavi

1 The New Telecom Bill-1.. Recalling the old Communication Convergence Bill 2001
2 The New Telecom Bill-2: Structure of the Bill
3 The New Telecom Bill-3-User Focus
4 The New Telecom Bill-4-Offences
5 The New Telecom Bill-5…Civil Penalties
6 The New Telecom Bill-6 …Industry Regulation
7 New Telecom Bill-7: Spectrum as an Asset
8 The New Telecom Act-8: Right of Way
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About Vijayashankar Na

Naavi is a veteran Cyber Law specialist in India and is presently working from Bangalore as an Information Assurance Consultant. Pioneered concepts such as ITA 2008 compliance, Naavi is also the founder of Cyber Law College, a virtual Cyber Law Education institution. He now has been focusing on the projects such as Secure Digital India and Cyber Insurance
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