Critically evaluate administrative assignment versus auction of satellite spectrum in light of the Telecommunications Act, 2023.

The Telecommunications Act, 2023 makes auction the default way to assign spectrum. It allows administrative allocation for the uses listed in its First Schedule, which include satellite services such as DTH and satellite telephony [1]. TRAI's November 2026 framework for Satellite Communication Network (SCN) providers uses this route [4]. Administrative assignment is the better fit for satellite spectrum, but only if its pricing is transparent.

Merits of administrative assignment

• Statutory backing: Parliament allowed non-auction assignment where auction is not suitable for technical or economic reasons [2]. The Schedule already lists DTH, VSAT, GMPCS and MSS in the L and S bands [3].
• Legal legitimacy: In the 2G case, the Supreme Court cancelled 122 licences given on a first-come-first-served basis. The Presidential Reference that followed questioned whether auction is the only lawful method [5]. Here, the exception comes from a statute, not executive choice.
• Low entry barriers: The authorisation fee is 8% of AGR with no minimum. The spectrum charge floor is Rs 3,500 per MHz per year [4]. Both help new space-economy firms enter.
• Inclusion and resilience: Direct-to-Device (D2D) service can reach remote, hilly and island areas and keeps working when ground networks fail [4].

Concerns: the case for auction

• Price discovery: Without bidding, a formula sets the price. This risks the public getting less than the spectrum is worth, which was the lesson of 2G [5].
• Executive discretion: Under Section 4(5), the government can add exceptions by notification. The notification is only laid before Parliament [2].
• Level playing field: Mobile operators pay auction prices. DoT itself asked TRAI to keep a level playing field with ground-based networks [7]. D2D puts both in the same market, and IMT-based D2D needs consent from channel holders in all 22 licensed service areas [4].
• Pricing uncertainty: TRAI's May 2025 proposal of 4% of AGR [6] was sent back by DoT on 12.11.2025 [7], so the pricing is still partly unsettled.

Auction still suits exclusive mobile bands, while satellite services fit the exception Parliament chose. Administrative assignment is the right choice for satellite spectrum, but transparency has to do the job that bidding would have done. DoT should publish how the spectrum floor is calculated, review it regularly, and settle the pending satellite pricing before notifying the SCN rules. This would meet the Supreme Court's concern against arbitrary allocation of natural resources and advance SDG 9 on resilient infrastructure and universal connectivity.