Auction route for spectrum to continue in India’s telecom sector

Telecom spectrum auction: The practice of auctioning of the telecom spectrum will continue to take place, while the administrative allocation route will be used sparingly, sources privy to the matter said. As per sources, the administrative allocation route will be taken only in those cases where it is technically not feasible to do so or for areas that are strategic in nature.  

The Department of Telecom (DoT) is gearing up to hold the next round of spectrum auction on June 6 for eight spectrum bands (800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz) meant for mobile phone services at a base price of about Rs 96,317 crore.

The spectrum will be assigned for 20 years and successful bidders will be allowed to make payments in 20 equal annual installments in the coming mega auction. Sources highlighted that the spectrum for mobile services will continue to be given through the auction process.

Government officials have disclosed that under the Telecom Act of 2023, administrative allocation of airwaves will be limited to specific cases, such as spectrum for police walkie-talkies, radar for weather forecasting, maritime communication, space, and satellite applications, as well as military communication and radar. This allocation method, constituting only 5-7 percent of total cases, will primarily benefit entities like BSNL and state-owned telecom corporations.

In a recent development, the government has petitioned the Supreme Court for a modification of a 2012 order. The proposed modification aims to permit administrative allocation in instances where auctioning is deemed technically unfeasible. Nonetheless, the auctioning process will remain the predominant method for allocating spectrum for the majority of cases.

Officials clarified that the Supreme Court filing is part of the procedural steps preceding the introduction of the Telecom Bill in parliament. This move underscores the government's commitment to balancing technical considerations with regulatory requirements in the allocation of airwaves.

(With PTI inputs)