Recently, the Telecom minister announced that satcom spectrum will be allocated administratively but will come at a cost.
| Criteria | Auctions | Administrative Allocation |
| Process | Involves competitive bidding where licenses are sold to the highest bidder. | Government directly assigns spectrum without bidding. |
| Revenue Generation | Generates significant revenue for the government. | Minimal revenue, often only covering administrative costs. |
| Transparency | High transparency, as the allocation is based on open, competitive bidding. | Low transparency, as the process is often less public and subject to discretion. |
| Market-driven | Market-driven approach, prices set by demand and supply in the auction. | Not market-driven; spectrum is allocated based on governmental priorities or needs. |
| Efficiency | Encourages efficient use of spectrum by awarding it to those who value it most. | May lead to less efficient use of spectrum, as it’s not always allocated to the highest-value users. |
| Suitability | Best suited for commercial services like telecommunications, broadcasting, etc. | Often used for government services, military, or specialized sectors. |
| Flexibility | Can lead to higher competition and innovation as bidders compete for spectrum. | Can be more rigid, with allocations often set by policy or specific needs. |
| Cost to Licensee | High costs, as licenses are awarded to the highest bidder. | Lower costs, as licenses are typically assigned for nominal or administrative fees. |
| Allocation Speed | Slower process, as auctions involve planning and execution. | Faster process, as it’s administratively managed by the government. |
To get PDF version, Please click on "Print PDF" button.
Learn From India's Best Faculty
Learn From India's Best Faculty
<div class="new-fform">
</div>
October 22, 2024
