New Delhi [India], November 28 : Amid the ongoing winter session of Parliament, Congress Lok Sabha MP Manish Tewari on Wednesday raised questions to the Minister of Communication regarding the decision of the Indian government to allocate space (satellite broadband) spectrum instead of auctioning it as per the 2012 Supreme Court ruling that makes it "mandatory" to carry out auctions for the distribution of natural resources.
"Whether the government has conducted any study to estimate the potential revenue loss or gain from administratively allocating space spectrum, as opposed to auctioning it like terrestrial spectrum," Tewari further asked.
The Congress MP also asked for a justification from the government for not moving forward with the auction of the space spectrum. He also questioned whether the government ensured a level playing field in administratively allocating space spectrum so that it doesn't create "unfair cost advantage" in favour of new companies entering the satellite market.
"The steps being taken by the government to ensure that administratively allocating space spectrum does not create an unfair cost advantage for new entrants over legacy players who purchased terrestrial spectrum at high auction prices?" Tewari asked.
Replying to this, Minister of State (MoS) for Communications and Rural Development Pemmasani Chandra Sekhar said that the Telecommunications Act of 2023 allows spectrum assignment through administrative processes for services, including satellite. The minister said that spectrums that are administratively assigned and auctioned are chargeable.
"The Telecommunications Act, 2023, provides for assignment of spectrum through administrative processes for services, including certain satellite-based services, listed in the First Schedule of the Act. The first schedule can be amended on account of reasons listed in Section 4(5)(a) of the Act. These can be to serve the public interest, to perform government functions, or where auctioning of spectrum is not the preferred mode of assignment due to technical or economic reasons," MoS Sekhar said in his written reply.
The level playing field with terrestrial services remains ensured since the Department of Telecom (DoT) pursues the recommendations made by the Telecom Regulatory Authority of India (TRAI) on pricing of (space) satellite spectrum, the minister added.
"Further, spectrum assigned administratively or by auction both are chargeable. In line with The Telecommunication Act 2023, the Department of Telecom (DoT) has sought recommendations of Telecom Regulatory Authority of India (TRAI) on terms and conditions of spectrum assignment, including spectrum pricing in respect of licensees intending to provide satellite-based communication services while accounting for level playing field with terrestrial access services. TRAI is yet to provide their recommendations to DoT," MoS Sekhar said.