Maarg Manthan · Topic 14.28

Spectrum Policy and Mobile Spectrum Management in India

Science & Technology › IT, Telecommunications and Computers · Topic 14.28

Radio spectrum is the range of electromagnetic frequencies used for wireless communication, and it is a limited natural resource owned by the public and managed by the Government. In India, the Department of Telecommunications through its Wireless Planning and Coordination Wing allocates and manages spectrum, while the Telecom Regulatory Authority of India gives recommendations. Spectrum for mobile services has mostly been given to operators by auction since 2010, as the Supreme Court in the 2G case of February 2012 held that natural resources must be allotted in a fair and transparent manner and cancelled 122 licences. The 5G auction of August 2022 raised about Rs 1.5 lakh crore in bids. The Telecommunications Act, 2023 now provides for both auction and administrative assignment of spectrum.

5 min read · UPSC Prelims · Science & Technology · IT, Telecommunications and Computers

At a Glance

Allocator DoT and WPC
Adviser TRAI
2G verdict February 2012
5G auction August 2022
New law Telecommunications Act, 2023
Exam link UPSC Prelims, Science & Technology: IT, Telecommunications and Computers

Where Does It Fit?

This topic follows the account of cybercrime and privacy debates. It returns to telecom and explains how the airwaves are allotted, which links directly with mobile generations and broadband policy. Previous topic: Contemporary Debates: Big Data and Privacy, Cybercrime and Security. Next topic: Broadband Policy in India.

How Is Spectrum Managed in India?

Aspect	Details
Ownership	Spectrum is a public resource, and the Government holds it in trust for the people
Allocating authority	Department of Telecommunications, with its Wireless Planning and Coordination Wing for frequency allocation and licensing
Regulator	TRAI recommends the price, method and terms for spectrum, but the Government decides
Digital Communications Commission	Apex body of DoT for policy and approvals
Bands	Low bands such as 700 MHz and 800 MHz travel far and enter buildings; mid bands such as 3.3 to 3.67 GHz give a balance; high bands such as 26 GHz (millimetre wave) give huge speed over short range
Usage charge	Operators pay a spectrum usage charge as a share of adjusted gross revenue in addition to the auction price
Spectrum cap	Limits on holdings prevent one operator from dominating

What Are the Landmarks in Spectrum Policy?

Early policy: spectrum was given with licences at administrative prices up to 2008
2G scam: the 2008 allotment of 2G licences at 2001 prices was criticised and, in the Centre for Public Interest Litigation case, the Supreme Court cancelled 122 licences in February 2012
Presidential reference: in September 2012, the Court said auction is not the only method for all natural resources but is the preferred one for maximising revenue in telecom
Auctions: 3G and broadband wireless auctions were held in 2010, and later auctions in 2012, 2013, 2014, 2015, 2016, 2021 and 2022
Spectrum sharing and trading: guidelines of 2015 allowed operators to share and trade spectrum
5G auction: held in July and August 2022, bids of about Rs 1.5 lakh crore, with Reliance Jio, Bharti Airtel and Vodafone Idea taking spectrum and Adani Data Networks taking some for captive use
Captive networks: the framework allows enterprises to get spectrum for private 5G networks
Telecommunications Act, 2023: replaced the Telegraph Act of 1885, lists services such as satellite broadband for administrative assignment, and allows spectrum sharing, trading and leasing

What Else Should You Remember?

Administrative assignment: allocation without auction for public services and satellite services, listed in the First Schedule of the 2023 Act
Satellite spectrum debate: global firms wanted administrative allocation while Indian operators wanted auction, to create a level playing field
Revenue to Government: spectrum auctions were a major source of non-tax revenue
Adjusted gross revenue dispute: the Supreme Court in 2019 upheld the Government’s definition of AGR, which burdened operators and led to a relief package in 2021
Telecom reforms of 2021: a nine-point relief package, with a four year moratorium on dues and allowing 100 percent foreign direct investment under the automatic route
Debt of operators: high spectrum prices and dues left operators stressed, so the Government became a large shareholder in Vodafone Idea
Right of way: rules to ease installation of towers and cables
Gati Shakti Sanchar portal: a portal for right of way permissions
Spectrum harmonisation: using the same bands worldwide to cut handset costs
ITU role: the International Telecommunication Union coordinates global frequency use, with World Radiocommunication Conferences
Spectrum refarming: moving old services to free up bands for newer ones
Unlicensed bands: bands such as parts of 5 GHz and 6 GHz are free for Wi-Fi, as in Networking: Bluetooth and Wi-Fi Hotspot
Defence spectrum: a large share is held by defence and space services, so releasing bands needs coordination
Spectrum monitoring: DoT monitors interference and illegal jammers
Link: the history of mobile systems is in Mobile Generations
Tower radiation: exposure norms in India are stricter than international limits
Spectrum for rural areas: bands are used for coverage under the digital bharat fund

Why Does It Matter for the Exam?

Bodies: DoT, WPC, TRAI
Judgment: 2G case, February 2012
Auction: 5G, 2022
Current affairs link: satellite spectrum and Act rules
Common errors: saying TRAI allots spectrum or that 122 licences were cancelled in 2008

As an analytical point, spectrum policy has to balance revenue with affordable and wide service. Very high prices can starve operators of investment, while free allotment risks the charge of favouritism.

Why Is This Topic Important?

Bodies DoT, TRAI
Cases 2G verdict
Reforms 2023 Act

What Came Next?

The next topic covers broadband policy in India. Next topic: Broadband Policy in India.

Key People and Terms

Spectrum Radio frequencies
WPC Wireless Planning and Coordination Wing
AGR Adjusted Gross Revenue
Administrative assignment Allocation without auction
Refarming Reassigning bands
Captive network Private enterprise network

Exam Corner

Points to Remember

2G case: February 2012, 122 licences cancelled.
5G auction: August 2022.
Telecommunications Act: 2023, replacing the 1885 Telegraph Act.
TRAI recommends, DoT decides.
Relief package: September 2021.

Do Not Confuse With

TRAI and DoT Recommends versus decides
Auction and administrative assignment Price discovery versus allotment
Low and high bands Coverage versus speed

Memory Hook

DoT allots, TRAI advises; two-G verdict wrote auction; the 2023 Act allows both ways.

Mains Angle

Questions ask for bodies, the verdict and the new Act. These points help.

Principle Public resource
Method Auction versus assignment
Stress Operator dues

A Question You May Face

An original practice question, not a past paper question.

“Critically examine India’s spectrum management policy and the changes brought by the Telecommunications Act, 2023.”

How to Answer

Principle Public trust.
History 2G verdict.
Methods Auction and assignment.
Balance Revenue versus access.

GS Relevance

Prelims: spectrum management bodies, 2G verdict, auction, Telecommunications Act. GS Paper 3: telecom, economy; GS Paper 2: governance.

Frequently Asked Questions

Who allocates spectrum in India?

Spectrum in India is allocated by the Department of Telecommunications, through its Wireless Planning and Coordination Wing, with policy approval from the Digital Communications Commission. The Telecom Regulatory Authority of India recommends the method, price and terms but the final decision lies with the Government.

What was the 2G spectrum case?

In the 2G case, the Supreme Court in February 2012 cancelled 122 telecom licences that were granted in 2008 on a first come first served basis at low prices, holding that the process was arbitrary. It said that natural resources like spectrum must be allotted in a fair and transparent way.

When was the 5G spectrum auction held in India?

India held its first 5G spectrum auction in July and August 2022, in which bids worth about Rs 1.5 lakh crore were received. Reliance Jio, Bharti Airtel, Vodafone Idea and Adani Data Networks participated, and 5G services were launched in October 2022.

What does the Telecommunications Act, 2023 say about spectrum?

The Telecommunications Act, 2023, which replaced the Indian Telegraph Act of 1885, provides that spectrum is assigned by auction in general but allows administrative assignment for listed uses such as satellite services and public services. It also permits sharing, trading, leasing and surrender of spectrum.

What is adjusted gross revenue?

Adjusted gross revenue is the revenue base on which telecom operators pay licence fee and spectrum usage charges to the Government. A long dispute about whether non-telecom income is included ended in a Supreme Court judgment in 2019 in favour of the Government, which left operators with large dues.

PYQ Practice — Statement Analysis

1 TRAI allocates spectrum in India.

False

It recommends; DoT allocates.

2 The Supreme Court cancelled 122 licences in 2012.

True

In the 2G case.

3 The Telecommunications Act, 2023 replaced the Telegraph Act, 1885.