According to National Frequency Allocation Plan 2011, this now seems inevitable. The draft of the same is available now at http://www.dot.gov.in/as/Draft%20NFAP-2011.pdf
The draft spectrum bill proposes to deal with all spectrum-related issues (entails restructuring of Wireless Planning & Coordination cell, which currently handles spectrum management) through formation of a “Spectrum Management Commission,”which will be the key body for spectrum management. The draft New Telecom Policy (NTP’11) is set to be released for public consultation in the next 2-3 weeks and is likely to include details related to spectrum management.
Key proposals of the bill (expectedly) include spectrum sharing and trading. In addition, there is also a plan for spectrum refarming (where appropriate) and establishment of a spectrum refarming fund (through proceeds from license fees and spectrum charges).
Spectrum sharing and trading should help operators with excess capacity, pave way for MVNOs and also help reduce overall capex (through intra-circle roaming). Key beneficiaries will be new launches/dual technology operators.
Spectrum refarming seems to have come back into discussion. TRAI, in its May-10 recommendations, had first proposed refarming of 900MHz spectrum when licenses come up for renewal from 2014/25.
According to National Frequency Allocation Plan 2011, this now seems inevitable. The draft of the same is available now at http://www.dot.gov.in/as/Draft%20NFAP-2011.pdf
Some of the difficulties in implementing this are as follows,
Potential for massive service disruption
Difference in timing of expiry of current licences for different operators across circles
Requirement for inter‐ministerial (defence, space) co‐ordination and implementation by telcos
Potential for inadequate 1800MHz with government to compensate telcos returning 900.