The Standing Committee on Communications and IT has suggested that spectrum auction documents should clearly identify the end users of airwaves sold to companies, with robust mechanisms in place to ensure efficient usage and clearly outline the scope of usage.
The committee also recommended that migration pricing for operators need to aligned with current market rates to prevent unjustifiable financial advantages and establish a post-auction review mechanism to ensure operators use the spectrum according to the terms of the auction.
In addition, the committee’s recommendations were influenced by CAG Report 20 of 2015, which raised concerns about the lack of due diligence in the auction of spectrum for broadband wireless access services, particularly highlighting deficiencies in the Notice Inviting Applications (NIA).
Further, it was observed that the Department of Telecom (DoT) enabled Infotel’s migration to a Unified License at 2001 pricing levels, resulting in an undue financial gain of Rs 33.67 billion. Furthermore, despite the spectrum auction taking place, the actual rollout of BWA services was minimal, casting doubts on the overall effectiveness of the auction process.
The committee also highlighted that increasing transparency in the auction process, with clear communication to stakeholders, would enhance public confidence and ensure the process is fair and effective and implementing these measures would make spectrum auctions more transparent, efficient, and beneficial for all stakeholders, including consumers.
