Review spectrum pricing mechanism for captive users to incentivise ministries: CAG to DoT

It suggested that the DoT should establish a permanent set-up comprising all stakeholders for a periodical review of spectrum planning, availability, allotments, assignments and pricing. This would expedite decisions for efficient management and optimal utilisation of spectrum in India

The Comptroller and Auditor General (CAG) has pulled up the Telecom Department for not finalising policy on spectrum assignment for captive uses and flagged the absence of spectrum price review for captive users administratively.

In its report titled 'Management of spectrum assigned on the administrative basis to government departments/agencies', the CAG asked the Department of Telecom (DoT) to review the spectrum pricing mechanism for captive users to incentivise ministries, departments and agencies, and for maintaining spectrum-management discipline.

"They may consider differential pricing, depending on the features and usage of various spectrum bands," the CAG said in a report tabled in Parliament on Monday.

It noted that despite receiving a legal opinion (July 2021) on its own reference, regarding the method for allotment of spectrum for captive uses, including government departments, the department had not finalised the policy for allotment and assignment of spectrum for captive uses/other commercial services with the approval of the Digital Communications Commission.

The DCC is the apex body for telecom policy formulation.

"DoT had also not reviewed the pricing of spectrum assigned for captive users administratively, on formulae basis since 2012, though a Committee had recommended for a periodical review of the pricing policy in 2013," the CAG report said.

There was no differential pricing for spectrum, depending on features and usage of various spectrum bands assigned to users, it observed.