To
Dr. Neeraj Mittal
Secretary
Department of Telecommunications (DOT)
Government of India
Dear Dr Mittal,
TRAI had circulated a Consultation Paper on 6th April 2023 on issues relating to allocation of satellite spectrum, specifically making a reference to the observations of the Hon Supreme Court in the 2G spectrum case in 2012, as follows:
“…In our view, a duly publicised auction conducted fairly and impartially is perhaps the best method for discharging this burden and the methods like first-come-first-served when used for alienation of natural resources/ public property are likely to be misused by unscrupulous people who are only interested in garnering maximum financial benefit and have no respect for the constitutional ethos and values. In other words, while transferring or alienating the natural resources, the State is duty bound to adopt the method of auction by giving wide publicity so that all eligible persons can participate in the process.”
In the same Consultation Paper, TRAI had also made a reference to the Hon’ble Supreme Court’s observation on 27th ofSeptember 2012 (in Case No.1/2012 on a Presidential Reference), as follows:
“[t]he 2G Case does not even consider other laws and judgments that prescribe methods, other than auction, for dispensation of natural resources; something that it would have done, in case, it intended to make an assertion as wide as applying auction to all natural resources. Therefore, the observations in Paras 94 to 96 could not apply beyond the specific case of spectrum, which according to the law declared in the 2G Case, is to be alienated only by auction and no other method. Thus, 2G case does not deal with modes of allocation for natural resources, other than spectrum”
In other words, as on date, the law as set out by the apex court on allocation of spectrum of any kind is that such allocation should be through a transparent auction process. In the first instance, I am not sure whether DOT has applied its mind to the potential role that satellite spectrum will play in providing support to our defence services and ISRO, keeping in view the enormous strides that China has made in recent times in the application of satellite spectrum usage in defence and space applications. DOT should accord the highest priority to the future needs of our defence services in order to safeguard the national interest. While there have been competing demands from different private agencies on the question of allocating satellite spectrum through auction or not, from news reports
(https://www.indiatoday.in/business/story/government-favours-administrative-allocation-spectrum-amid-elon-musk-ambani-showdown-2617515-2024-10-16), it appears that the Telecom Minister Jyotiraditya Scindia has announced that India will follow the global trend of administrative spectrum allocation. The decision came after Starlink CEO Elon Musk objected to Ambani’s Reliance Jio lobbying for the auction route. It is ironic that DOT should get so easily swayed by pressure from one global player, Elon Musk, not by the needs of Defence, ISRO, or miliions of consumers who are woefully at the receiving end of corporate telecome operators, on whose tariffs, regulatory control is non-existent.
Evidently, the Telecom Minister has not been adequately briefed by his officers of Hon’ble Supreme Court’s observations on the allocation of satellite spectrum, nor has he been apprised of the way telecom consumers are being fleeced by private operators in India.
Considering that spectrum, whether it is through satellites or otherwise, is a valuable natural resource, the allocation of which should be made so as to subserve the overall public interest to the maximum extent. If it is administratively allocated, whatever be the norms that apply, the allocation process would be non-transparent and price discovery not amenable to verification. If the price is too high, the cost burden would fall on consumers and if it is too low, private allottees would profit at the cost of consumers, as happened recently in the case of 5G services.
In any case, allocation of satellite spectrum in our case would be prima facie illegal, if it is done in any way other than the one stipulated by the apex court.
On the other hand, if satellite spectrum is reserved entirely for strategic uses as indicated above, it would maximise benefits to the society.
I request DOT to be cautious in proceeding further on allocation of satellite spectrum to private players, especially through non-transparent procedures and preferably earmark it exclusively for strategic uses.
Regards,
Yourssincerely,
EA S Sarma
Former Secretary to the Government of India
Visakhapatnam