Equity vs Efficiency in Telecom Spectrum Management in India

In: Margin: the journal of applied economic research, Volume 1, Issue 3, p. 321-335

Abstract

The phenomenal growth in mobile communications and introduction of third generation (3G) mobile services have put focus on spectrum management in India. The radio spectrum is a limited natural resource that is fully renewable without incurring costs. Therefore, it must be efficiently used and equitably distributed. For this to take place, present spectrum allocation policy in India requires a number of modifications. Further, the government has selected the market approach for allocating spectrum for 3G mobile services. The market approach, unless accompanied by relevant policy changes, at the most will result in maximised receipts from spectrum auctions. The elements of spectrum reform that help realise development potential of telecommunications are brought out in this paper.