New Delhi, Nov. 16 -- On 13 November the Supreme Court of India reserved its order on how spectrum held by Aircel and Reliance Communications (RCom) will be treated under their insolvency proceedings.

The court's decision will be significant as it will provide clarity on whether telecom spectrum - a natural resource and thus Constitutionally recognised as belonging to the citizens of India, with the government acting as a trustee - can be liquidated under the IBC for lenders to recover their dues. The ruling thus has implications for lenders, the government, and the future of India's defunct telcos.

Let's take a closer look.

Telecom spectrum is the invisible radio highway that wireless devices use to send and receive signals, which is ...