Re-Auction of 2G Spectrum - I say a Big "NO"

The 2G spectrum controversy continues to make news,with the latest headline concerning a possible breakthrough in the government-opposition logjam on the issue of forming a joint parliamentary committee.Given allegations of irregularities in spectrum allocation on a first-come,first-served basis during former telecom minister A Rajas stint,this is understandable.Investigations must take their course and anyone found guilty of wrongdoing must be booked.Whether the CBI,judiciary or a parliamentary panel contributes to this effort,corruption needs to be exposed and nailed.Theres no arguing there.

The consumer-friendly principles on which allocation policy has been based since 1999 need junking lock,stock and barrel.Indignation about graft shouldnt breed irrationality.Nor should the government allow itself to get spooked by the BJPs somewhat disingenuous aggression.Spanning NDA and UPA rule,decisions geared to keeping services cheap and competitive fuelled our telecom boom,massively increasing teledensity.Mobile telephony having reached millions,India has now overtaken China as the fastest growing mobile phone market.It has around 730 million subscribers,the ranks swelling monthly.Surely thats something to celebrate.

What weve done right is orient policy more to maximising public good than just government revenue.Telecom minister Kapil Sibal said as much recently.Yet his ministry seems to have been bamboozled into shifting gear.Under the proposed national telecom policy 2011,spectrum pricing will be market-driven,another term for auctions.Such a shift can boomerang,going by the past experience of 3G spectrum-bled European firms.Make revenue maximisation the mantra,and bidding for the resource will mean financial strain for companies and,eventually,higher prices for consumers.That in turn will impede development of data-centric communications in a spectrum-hungry sector.

Growth of high-speed broadband must be incentivised.So,why raise service providers input costs instead of seeking to gain from boosted output We need allocation models prioritising easy availability and revenue sharing.Thatll help firms build infrastructure,instead of getting flattened by the costs of acquiring spectrum.Its obvious why the US which experimented with auctions in the past has given a certain amount of unlicensed spectrum to private players and is set to free up more.If network-builders and operators can easily access this vital resource,everyone can benefit from quality broadband connectivity.In the information age,no fast-growing country putting a premium on productivity and innovation can pass up efficient data networks.Our economys competitiveness and inclusiveness depend on taking Indias telecom revolution to the next level.Lets not drive in reverse gear.