5.7 

Allocation of available spectrum 

The issue for discussion is the policy of additional spectrum allocation to 

existing players vis a vis new entrants. The country today has upto 8 

networks / licenses capable of providing Cellular Mobile Services. The 

competition is aggressive and there has been a pressing demand from these 

operators for 800 MHz / 900 MHz / 1800 MHz spectrum. Today we have a 

spectrum scarce scenario, and it may take some time before additional 

spectrum is made available by re farming.  

To take care that scarcity of spectrum does not impede the growth of existing 

networks, it may be worthwhile to consider allocation / reservation of a certain 

amount of spectrum for existing operators and allocation to new entrants in 

these bands be considered only if surplus is available. This cap on fresh 

allocation can be maintained for a period of 2 years or a situation where a 

certain amount of spectrum per operator has been re farmed. Also this cap 

would not be applicable for service areas where the number of networks is 

less than 8. However, the new entrants would be free to provide and acquire 

spectrum in other bands such as 450 MHz even within this time frame. 

5.8 

Procedure for allocation of spectrum to Service Providers 

Allocation of additional spectrum / new spectrum is a function of technical 

efficiency achieved, One off price payable, amount of spectrum available vis 

a vis demand. 

(Allocation methodology) = 

F 

(Tech eff., Price, Scarcity (availability   

demand)) 

5.8.1  Areas where there is no scarcity 

In areas where there is no scarcity, there is no requirement for price to be a 

criteria for selection and the operators could be awarded spectrum provided 

they are utilising the existing spectrum efficiently (technical efficiency) and 

agree to pay the charges. Allocation of spectrum could be on the basis of the 

operator meeting the technical benchmarks (discussed in Chapter 3). The 

charges for the spectrum would be arrived at using a methodology that would 

have an inherent efficiency consideration (options discussed in Chapter 4). 

This would however, necessitate different technical evaluation benchmarks for 

different technologies and possibly areas. 

5.8.2      Areas where there is scarcity 

In areas, where demand exceeds supply there are two possible alternatives 

a)  Spectrum is equally distributed; 

b)  Spectrum is allocated through a competitive mechanism 

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