In its final report, a government panel, established to frame rules pertaining to spectrum allocation and pricing, has said that spectrum allocation should be done through a suitable market-related process. This should be chalked out by the Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI).
The panel?s final report differs vastly from its draft version, which stated that allocation should be done through the auction route.
In response, it is believed that various GSM operators feel that this amounts to the panel complying with DoT?s stance that the auction route is inappropriate, while adding that the panel?s recommendations will allow the government to choose the benchmark for spectrum pricing.
Operators have also pointed out that the final recommendations have not discussed the issue of permitting spectrum trading. In its earlier report, the panel discussed this issue in depth, while the final report only states that spectrum trading should be looked into at an appropriate stage.
Currently neither spectrum trading nor sharing is permitted.
The draft report had stated, “Trading, merger or sharing of spectrum should be allowed and the existing commodity exchanges or a new dedicated exchange should be entrusted with the responsibility of regulating spectrum trade. In case spectrum, which was allocated at administrative prices, is sold through such mechanisms, a spectrum enhancement charge should be levied on the sale, the exact quantum which can be worked out by DoT, in consultation with TRAI.?
The draft had also added that if the road map for the future release of spectrum through auctions was to be made available, it would temper bids in future auctions. So far, 2G spectrum has been given to operators, based on their customer numbers.
