In Europe and the USA, spectrum is auctioned and governments earn substantial amounts. For example, in the USA the reserve price for spectrum in 700 MHz band is $10 billion. Auction will happen next month.
In India, spectrum was given free to telecom operators due to strong opposition from the GSM players. All GSM players including Bharti Airtel and Idea brought legal opinions against spectrum whenever the Government wanted to have a debate on this issue.
Singh also said that the Government and the regulator should work closely. “In the final analysis, the key issues are correct pricing, fair allocation rules, and a pro-competitive stance. In the past, the department and the regulator have successfully enabled the rapid growth of this sector. I believe that working closely with the independent statutory regulator, we can balance multiple objectives in a fair manner,” the Prime Minister said.
ManmohanSpeak
PM stresses efficient use of
spectrum as a limited resource
Says Govt must earn substantial revenue from spectrum
Focuses on greater cooperation between Govt and regulator