The government panel appointed to settle the critical issue of additional spectrum allocation is reportedly interested in revenue-generating auction model rather than the current subscriber-based system. The panel appointed by the Department of Telecom (DoT) is likely to settle the additional spectrum allocation issue through auctioning, against the current subscriber-based system.    

The Department of Telecom (DoT) has indicated that the panel has unanimously decided in favour of the auction-based system against the current subscriber-based system. The panel will submit its report in the next 10 days.

According to senior DoT official, the switching from the present subscriber-based system to an auction-based system will affect the existing parties in different ways, but "we would try our best to bring out a fair, just solution which would be beyond legal challenge. We have already heard the stakeholder and taken their inputs”.

However, the final decision on the issue will be taken by the next government, and the spectrum allocation auction will take place after the ongoing general elections.

Presently, the operators using GSM technology get 6.2 MHz of spectrum each, while the operators using CDMA technology get 5 MHz each. The maximum limit of spectrum, for GSM operators is 15 MHz, while for the CDMA operators, is 7.5 MHz. The job of the panel, headed by the DoT additional secretary Subodh Kumar, is to look at a model of spectrum allocation allotments beyond the existing 6.2 MHz and 5 MHz.

The operators already having spectrum above the 6.2 MHz and 5 MHz may have to pay a one-time fee for the excess spectrum, recommended by TRAI; the panel is expected to support that. The top GSM operators including Bharti, Vodafone, Idea (in some circles) are holding over 6.2 Mhz spectrum. Recently, the TDSAT severely criticized DoT decision allocate additional spectrum to incumbent operators including Bharti Airtel and Vodafone beyond 6.2 MHz. According to TDSAT, the additional spectrum allocation based on subscriber base was unfair to late entrants in the field. The issue has been the subject of a dispute for some years; the politicians like Amar Singh, who has close ties with Anil Ambani of Reliance Communications, are opposing the allocation and demanding surrendering of spectrum by incumbents.