How successful has India’s spectrum policy been in enabling connectivity? Examine its limitations and the provisions under the new policy. Also suggest a way to use spectrum for ending the country’s digital divide.

The Draft Indian Telecommunications Bill, 2022 has been released and it will replace existing laws in the telecom sector, such as the Indian Telegraph Act 1885, Indian Wireless Telegraph Act 1933 and the Telegraph Wires (unlawful possession) Act 1950. The draft also includes spectrum policy.

Present spectrum policy in India:

• The telecom sector was liberalized in 1981, with first-come first-license policy launched initially.
• The policy was replaced with an open auction policy after the 2G scam.
• The cost of spectrum in India is one of the highest in the world. Upgradation of network and infrastructure is hampered due to higher cost of spectrum, which ultimately results in poor quality service.
• Most of the operators focus on urban markets, this increases the digital divide between the rural and urban areas.
• Despite all the shortcomings, India hosts the second largest telecommunication network in the world with more than 800 million internet subscribers and more than 1 billion mobile subscribers.
• Technical limitations in optimum utilization of the spectrum.

New policy:

• The draft bill refers to spectrum as a public good and an inexhaustible resource.
• Where is the provision of “use it, share it or lose it” regarding the spectrum use under the draft Bill.
• The draft Bill aims to improve the accessibility of the spectrum and ensure better connectivity, thereby reducing the digital divide.
• It also provides for administrative allocation of unsold spectrum.

Way forward:

• Promoting the idea of niche operators.
• Rationalizing the cost of spectrum.
• Promoting investment in underserved areas to reduce the digital divide.
• Building a transparent ecosystem for healthy competition.

Ending the digital divide is imperative to achieve the aim of inclusive development and a Digital India.

Topics: GS-III: Economic Growth Development • GS-III: Changes in Industrial Policy and Their Effects On Industrial Growth