Context
The telecom spectrum auctions concluded after bidding, with the Centre garnering RS. 77,814.80 crore in revenues.
What is electromagnetic spectrum?
- The electromagnetic (EM) spectrum is the range of all types of EM radiation, with different frequency and wavelength.
- In telecom industry, spectrum relates to the radio frequencies allocated to the mobile industry and other sectors for communication over the airwaves.
Process of spectrum allocation in India
- Department of Telecom prepares a proposal of “spectrum auction” along with specific bandwidths
- Cabinet approves DoTs recommendation.
- Department of Telecommunication (DoT) conducted several rounds of spectrum auctions using the Simultaneous Multiple Round Ascending method
- Spectrum Usage Charges (SUC) for the spectrum acquired in this auction will be payable at the rate of 3% of Adjusted Gross Revenue (AGR) of the licensee, excluding revenue from wireline services.
- The auction is concluded and these provisional results are subject to scrutiny and approval by the Government.
Supreme Court on Spectrum
- The spectrum is a scarce recognised natural resource.
- The State acts as a guardian and trustee of the natural resources.
- The licensee does not own the spectrum and has merely been granted a right to use, which is based on fulfilment of the conditions of the contract in the form of a Licence Agreement.
