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The Department of Telecom is examining whether the Supreme Court ruling on allocating natural resources through the auction method is applicable to non-commercial users of spectrum also.
Non-commercial users of spectrum, including Railways, Police and Municipal Corporations, are currently given radio-frequency through an administrative method for their internal communication requirements. In return, these entities pay a spectrum usage charge to the Government.
Apex Court order
However, the rethink is fallout of the February 2 order by the Supreme Court, which said that the State is duty bound to adopt the method of auction while allocating any natural resources. In the light of the court order, the DoT is looking at whether it can continue to allocate spectrum through an administrative process to different Government agencies.
DoT sources said that during a high level meeting recently it was decided to continue with the existing allocation method till the Supreme Court takes a view on the Presidential Reference. However, the allocation will be made with riders.
In the Presidential Reference, the Government has sought clarification from the court on whether the only permissible method for disposal of all natural resources across all sectors and in all circumstances is by conduct of auction.
In the interim, the DoT is planning to make conditional allocations to the non-commercial users. “We may introduce some conditions in the operating licence given to non-commercial entities making the spectrum allocation subject to the outcome of Presidential Reference,” said a top DoT source. If the final decision of the Supreme Court is to allot natural resources only through auction, the spectrum given will be withdrawn.
“In case, the allotment of spectrum is withdrawn, payment made towards spectrum charge shall not be refunded,” said the DoT official.
Radio frequency spectrum ranging from 10 khz to 300 GHZ has been allocated to numerous agencies. The major captive user organisations are Airports Authority, Maritime services, Ports agencies, Fire Service, Broadcasting, Indian Space Research Organisation, State Police Organisations and Defence Forces.
Key question
If these entities are forced to buy spectrum through an auction, the Government stands to gain additional revenues. But the key question is whether there will be competing bidders for radio frequency being used by different players.
Spectrum usage is based on global standards wherein a particular frequency band can be used for specific purpose. For instance, spectrum used for satellite service may not be suitable for police communications.
> thomas.thomas@thehindu.co.in
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