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Centre garners RS. 77,814.80 cr after spectrum auction

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    3rd Mar, 2021

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.

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