Allocation of satellite spectrum without auction will raise concerns on legality: Former SC Judge

Allocation of spectrum without auction to satellite companies for commercial purposes will raise concerns on the legality of the method.

New Delhi: Allocation of spectrum without auction to satellite companies for commercial purposes will raise concerns on the legality of the method, former Supreme Court judge Nageswara Rao said in his response to Reliance Jio. Reliance Jio had sought the opinion of the former SC judge on the matter.

Reliance Jio has submitted the opinion to the Telecom Regulatory Authority of India in support of its argument that spectrum to satellite companies for communication services should be allocated through auction only.

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“… in the light of the commercial considerations underpinning the allocation of satellite spectrum and sans or welfare objectives, any law or rules providing for a method other than auction, raising concerns on its legality, could be found constitutionally unsound under Article 14 of the Constitution of India,” Rao said.

Article 14 of the Constitution talks about equality protection of citizen before law.

Satellite players have unanimously demanded allocation of spectrum through administrative methodology.

Industry body Indian Space Association (ISpA) in its submission to the regulator has said there is no auction model for satellite spectrum globally and the standard practice is to assign spectrum administratively and without exclusivity.

Telecom Operators Jio and Vodafone Idea have cited Supreme Court judgement in their argument to allocate spectrum through auction.

ISpA said that the decision in the Presidential Reference confirms that the findings of the 2G Judgment regarding auctions should not apply to the allocation of satellite spectrum.

“…additional precedent confirms that the Government can consider various methods of spectrum allocations, including administrative assignments, and is not limited by the findings in the 2G Judgment,” ISpA had said.

Rao in his opinion to Reliance Jio cited various Supreme Court judgements which state that when a policy decision is not backed by a social or welfare purpose the adoption of means for allocation of natural resources other than those that are competitive and maximise may be arbitrary.

In reference to international practices for satellite spectrum allocation, Rao said, “International practice cannot become the acceptable norm in light of the law laid down by the Supreme Court on the touchstone of our constitutional precepts and principles with respect to the alienation of spectrum.

This is the second opinion of a former apex court judge that Reliance Jio has submitted before Trai.
Jio has also submitted an opinion of former SC judge KSP Radhakrishnan.

Radhakrishnan too has held auctions as the only permissible mode for assignment of spectrum for commercial space-based communication services.

“My opinion is that administrative assignment of spectrum for commercial space-based communication services would be arbitrary and unreasonable,” Radhakrishnan said.