Allegations over allocation of microwave spectrum baseless: Telecom Minister Manoj Sinha

Manoj Sinha says that bidding rules do not apply to backhaul airwaves

Ministry of Communications, New telecom policy, National Digital Communications Policy 2018, NDCP, Telecom Minister Manoj Sinha, India News, Indian Express

Telecom Minister Manoj Sinha (Express: Ravi Kanojia/File)

Responding to allegations of impropriety towards allocation of spectrum without auction, Telecom Minister Manoj Sinha Wednesday defended the administrative allocation of microwave spectrum, saying that bidding rules do not apply to backhaul airwaves. He pointed out that the 2012 Supreme Court verdict that cancelled allocations done on first-come-first-serve basis did not cover backhaul spectrum.

“I want to say that the SC order of 2012 was about access spectrum and not backhaul spectrum. It is not one service provider but all those who were genuine, were given microwave spectrum on an administrative basis, before and after the order,” Sinha told reporters.

The Comptroller and Auditor General of India (CAG), in a report tabled before Parliament in the recently concluded Winter Session, noted that microwave access (MCA) spectrum was allocated to a telecom operator in December 2015 on first-come-first-serve basis (FCFS), in contravention to the recommendations of a committee, while 101 applications for microwave spectrum were pending with the Centre.

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The report also said that the Department of Telecommunications (DoT) had constituted a committee in December 2012 to look into the allotment of spectrum in various categories of spectrum users and proposed that the spectrum allotment in microwave band to all operators should be done through market-related process of auctioning.

The Congress had, earlier this week, demanded a probe into the matter following findings of the CAG. The Congress also alleged that the CAG had found that various instances of spectrum mismanagement by the DoT had caused a loss of around Rs 560 crore to the public exchequer.

“The allegations are baseless and without any evidence,” Sinha said. He also asserted that so far the backhaul spectrum has not been auctioned, but allocated administratively, and added that the telecom regulator too had recommended the same. This was a part of the DoT’s response to the CAG in the national auditor’s report.

However, the CAG termed DoT’s response to be untenable. It noted: “In order to maintain the level playing field among all telecom operators, DoT decided in 2011 that in future spectrum would be made available only through market driven process. DoT had started auction of access spectrum but also continued allotment of MWA spectrum administratively (FCFS) to telecom service providers. This shows contradictions in DoT’s own policy implementation”.

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Responding to a specific question on whether there is a decision to auction such spectrum, the minister said, “So far there is no decision … we are neither considering it nor studying”. He added that adequate safeguards are in place to ensure that whenever the government takes a decision, those allotted such spectrum will have to pay up, retrospectively.

Sinha also defended the decision on deferred spectrum liability, saying extending the period of making payments to 16 years would bring Rs 74,446 crore more to government coffers.