Daily Current Affairs : 6-May-2024
In a recent substantial development, the Supreme Court of India rejected the Centre’s request for administrative allocation of spectrum. This ruling reinforces the importance of open and obvious auctions for spectrum allocation, as highlighted in the landmark 2G spectrum case. The judgment emphasizes the need to avoid favoritism and ensure equity in dispensing the precious airwaves.
Why Did the Supreme Court Reject the Centre’s Application?
The Supreme Court rejected the Centre’s plea for administrative allocation because it believes that spectrum allocation should be conducted through a transparent and open auction process. This approach is crucial to:
- Avoid favoritism: Ensuring that spectrum isn’t allocated to particular private players in a biased manner.
- Promote fairness: Providing equal opportunities for all companies, allowing them to compete fairly.
- Ensure transparency: Maintaining clarity in how spectrum is distributed, preventing corruption and unfair benefits.
The Court’s decision was based on the principles laid down in the 2G spectrum case, where the significance of transparency and fairness in spectrum allocation was established. The ruling underlines that spectrum, being a public resource, should not be allocated without a fair and open process.
What is the Legal Framework Regarding Spectrum Allocation?
According to the Telecommunications Act, 2023, the government has the authority to allocate spectrum through administrative processes. However, this is applicable only to specific entities listed within the Act’s First Schedule, such as:
- National security organizations
- Defence services
- Law enforcement agencies
These groups may receive spectrum without going through an auction process. For all other entities, spectrum allocation must follow an open auction to ensure fairness.
What is Spectrum?
Spectrum refers to the range of radio frequencies used for transmitting wireless signals. These frequencies are essential for various communication services, including mobile networks (like 2G, 3G, and 4G), radio broadcasting, and satellite communications. The spectrum is divided into different frequency bands:
- Low bands: Used for wide coverage and long-distance signals.
- Mid bands: Offer a balance between coverage and speed.
- High bands: Provide faster speeds but cover smaller areas.
These airwaves are crucial for the functioning of modern communication systems.
Spectrum Allocation Methods Around the World
The method of allocating spectrum varies from country to country. Here are a few examples:
- New Zealand: Initiated auctions for spectrum allocation in 1989, setting a precedent for other nations.
- United States: Switched to spectrum auctions in 1993 after earlier problems with license lotteries, which led to speculative bids and losses.
- Canada and the EU: Often use an administrative process for spectrum allocation, especially in cases involving national security or other sensitive areas.
Important Points:
- Supreme Court Ruling: The Supreme Court of India rejected the Centre’s request for administrative allocation of spectrum, reinforcing the need for open and transparent auctions.
- Reason for Rejection: The Court emphasized that spectrum allocation must follow a fair auction process to avoid favoritism, ensure fairness, and promote transparency.
- Legal Framework: The Telecommunications Act, 2023 allows the government to allocate spectrum administratively only to specific entities like national security, defense, and law enforcement agencies.
- What is Spectrum?: Spectrum refers to radio frequencies used for wireless communication services such as mobile networks (2G, 3G, 4G), radio, and satellite communications.
- Low Bands: Used for long-distance coverage.
- Mid Bands: Balanced for coverage and speed.
- High Bands: Provide faster speeds with smaller coverage areas.
- Global Spectrum Allocation Practices:
- New Zealand: Initiated spectrum auctions in 1989.
- United States: Adopted auctions in 1993 after problems with speculative bids.
- Canada and EU: Often use administrative allocation, especially for national security-related purposes.
- India’s Focus on Auctions: Ensures fair and transparent distribution of spectrum, maximizing public benefit and preventing misuse.
Why In News
The Supreme Court of India rejected the Centre’s plea for administrative allocation of spectrum, upholding the principle of open and transparent auctions for spectrum allocation, and reinforcing the need for fairness, accountability, and equal opportunity in the distribution of this valuable national resource.
MCQs about Supreme Court Upholds Auction-Based Spectrum Allocation
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Why did the Supreme Court of India reject the Centre’s plea for administrative allocation of spectrum?
A. Because the Centre did not follow the legal process
B. To promote fairness and transparency in spectrum distribution
C. To encourage government control over the spectrum
D. Because the Centre’s plea was irrelevant
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According to the Telecommunications Act, 2023, who can receive spectrum without going through an auction?
A. Private telecom companies
B. National security and law enforcement agencies
C. Foreign companies
D. State-owned telecom companies
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What is the main reason for the Supreme Court’s decision to uphold auction-based spectrum allocation?
A. To encourage competition and ensure fairness
B. To increase government revenue
C. To provide free spectrum to telecom companies
D. To simplify the spectrum allocation process
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What is spectrum, and why is it important?
A. Spectrum refers to internet bandwidth and is essential for email communication
B. Spectrum refers to radio frequencies used for wireless communication, including mobile networks, radio, and satellite services
C. Spectrum refers to mobile phone batteries used for communication
D. Spectrum refers to satellite orbits used for global communication
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