The draft National Frequency Allocation Plan 2011, which is divided into 12 chapters, has been prepared by a committee chaired by Justice Shivraj Patil, a former Supreme Court judge who had also examined the allocation of spectrum from 2001 to 2009.
Distinguishing between spectrum for commercial and non-commercial or strategic or public interest use, the draft states that for spectrum for commercial use, the Commission shall follow a fair, transparent, equitable, non-discriminatory market-based competitive assignment which may include (but not limited to) methods such as auction, tender, bidding.
The Act is proposed to be enforced through a Spectrum Management Commission of 10 members, including two part-time members. The Cabinet secretary and the Department of Telecommunications (DoT) secretary will serve as its chairperson and vice-chairperson respectively.
Secretaries from the ministries of defence, space, and information and broadcasting, will be its members. Spectrum pricing, according to the draft, will follow the present system of licence fees and spectrum usage charges. The bill allows for spectrum sharing and trading, either completely or partially, subject to certain conditions. Spectrum rights will be granted under the provisions of this bill via a radio spectrum licence, which will have a specific validity date. The licence will be liable for revocation, suspension, renewal, and transfer.
The draft also seeks to delink spectrum management from the licence given to operators and will result in restructuring of the Wireless Planning & Coordination (WPC) Cell of DoT, which is currently tasked with the management and allocation of spectrum.
The Spectrum Management Commission shall be the sole body for dealing with all matters relating to spectrum notwithstanding the current provisions of the Telecom Regulatory Authority of India (TRAI) Act, but may request TRAI for its recommendations on spectrum-related issues from time to time.
Also, the proposed bill envisages punishment for wrongful possession of wireless equipment or use of radio spectrum without licence as well as for spectrum hoarding. For any person found guilty of spectrum hoarding, a strict fine and up to three years of imprisonment, or both is proposed. The bill envisages spectrum refarming where appropriate and the establishment of a Spectrum Refarming Fund, for which a separate administrator will be appointed. A percentage of money received from licence fees and spectrum usage charges will be credited to this fund.
