Congress MP Manish Tiwari raised questions on administrative allocation of space spectrum

New Delhi: In the midst of Parliament’s ongoing winter session, Congress Lok Sabha MP Manish Tewari questioned the Minister of Communication on Wednesday about the Indian government’s choice to distribute space (satellite broadband) spectrum rather than put it up for auction in accordance with a 2012 Supreme Court decision that declared it “mandatory” to hold 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 said.

The Congress MP also requested an explanation from the administration for why the space spectrum auction was not proceeding. In order to prevent “unfair cost advantage” for new firms joining the satellite market, he also questioned whether the government implemented a level playing field in the administrative distribution of space spectrum.

“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 inquired.

In response, Pemmasani Chandra Sekhar, Minister of State (MoS) for Communications and Rural Development, said that the Telecommunications Act of 2023 permits spectrum assignment for satellite and other services via administrative procedures. Spectrums that are administratively allotted and put up for auction are taxable, according to the ministry.

“The Telecommunications Act of 2023 allows for the administrative assignment of spectrum for services, including those satellite-based services that are included in the Act’s First Schedule. The Act’s Section 4(5)(a) lists the grounds for amending the first schedule. These may include serving the public interest, carrying out official duties, or situations in which spectrum auctioning is not the best method of assignment for technical or financial reasons,” MoS Sekhar said in his written response.

Since the Department of Telecom (DoT) follows the Telecom Regulatory Authority of India’s (TRAI) recommendations for the price of (space) satellite spectrum, the equal playing field with terrestrial services is still guaranteed, the minister said.

Additionally, spectrum that is auctioned off or allocated administratively is subject to fees. The Department of Telecom (DoT) has asked the Telecom Regulatory Authority of India (TRAI) for recommendations on the terms and conditions of spectrum assignment, including spectrum pricing for licensees planning to offer satellite-based communication services while taking into account level playing fields with terrestrial access services, in accordance with The Telecommunication Act 2023. “TRAI has not yet given DoT their recommendations,” MoS Sekhar said.