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This is an archive article published on December 9, 2008
Govt justifies spectrum allocation
Explaining its decision to apportion spectrum among Telecom companies on a first-come-first-served basis, the Government claimed before the Delhi HC that the policy was for the benefits of the consumers, whose interests would be jeopardized if there was open bidding for the resource allocation.
Written by Enseconomicbureau
New Delhi | December 9, 2008 12:00 AM IST
2 min read
2 min read
Explaining its decision to apportion spectrum among Telecom companies on a first-come-first-served basis, the Government on Monday claimed before the Delhi High Court that the policy was for the benefits of the consumers, whose interests would be jeopardized if there was open bidding for the resource allocation.
8220;If the spectrum was to be auctioned to the highest bidder for an upfront payment, such a bidder would pass on the cost to the customer or would go bankrupt. The cost of running the services can become so high that nobody would be really interested in applying for the licence,8221; the 48-page affidavit by the Government read.
Furnishing its response over a public interest litigation PIL, the affidavit contended that the policy was followed to encourage competition and to provide a level playing field to the newcomers in the telecom sector.
It said the spectrum fee was not necessarily a sale of government property that the highest amount should be realized immediately. 8220;This is a case of authorising of a set up of services to benefit the consumer. Completely different considerations prevail,8221; the government contended.
The court is hearing a PIL filed by Arvind Gupta, who has averred the communications ministry acted in conflict with TRAI recommendations.
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