The Department of Telecom (DoT) has rejected a key recommendation of the telecom regulator TRAI, that aimed to increase the threshold cap of equity crossholdings to 20 per cent by the same promoter in two separate companies offering services in the same licence area.

The Centre is close to finalising the guidelines for new entrants in the Telecom sector, with a possibility of existing players getting priority in allocation of radio wave spectrum. The subscriber-linked criterion is likely be increased by many multiples before existing operators are given more spectrum.

Private GSM Mobile operators have opposed the government’s move to allot additional spectrum to state-run telecom company BSNL, saying it is a clear violation of the contractual and legal rights of the private operators.