Centre garners RS. 77,814.80 cr after spectrum auction

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.