The Ministry of Communications (Department of Telecommunications) on January 31st 2025 issued a notification regarding the Telecommunications (Assignment of Spectrum through Auction) Rules, 2025, as per the powers conferred by the Telecommunications Act, 2023.
The rules are designed to regulate the process of spectrum auctions and address various related issues.
The rules aim to bring clarity to the auction process, spectrum assignment, and surrender, alongside ensuring a more streamlined and transparent digital implementation.
Definitions & Key Terms
Several terms are clarified in these rules to ensure consistent understanding, including:
- NIA – Notice Inviting Applications, a formal call for spectrum auction participation.
- SACFA – Standing Advisory Committee for Frequency Allocation, which ensures technical coordination in spectrum management.
- SAL – Spectrum Assignment Letter, which will be issued to successful bidders after the auction.
The rules also specify how the Telecommunications Act, 2023 terms will be used.
Spectrum Auction Process
- Identification of Frequency Bands: The Central Government will regularly identify frequency bands for auction.
- Reserve Price Determination: The Government, with input from the Telecom Regulatory Authority of India (TRAI), will set a reserve price for each auction.
- Auction Process: Auctions may be conducted by the Government or agencies appointed by it, with the successful bidder receiving the Spectrum Assignment Letter (SAL).
Eligibility and Participation in Auction
- Eligibility Criteria: Those wishing to participate in auctions must meet eligibility conditions outlined in the Notice Inviting Applications (NIA).
- Issuance of Demand Letter: After the auction concludes, successful bidders will receive a demand letter, specifying the spectrum charges and the payment timeline.
- Payment & Authorisation: Successful bidders must pay the spectrum charges and apply for authorisation if not already obtained. If the bidder fails to apply for authorisation, the earnest money deposit is forfeited. If the authorisation is denied, the SAL will be terminated, and the charges refunded minus any applicable pro-rata deductions.
Surrender of Spectrum
- Eligibility for Surrender: An assignee or licensee who has held the spectrum for at least ten years may choose to surrender it, subject to conditions.
- If additional spectrum is acquired after holding for ten years, the initial spectrum can be surrendered after two years of holding the new spectrum.
- Application for Surrender: The licensee must apply at least 12 months before the proposed surrender date, paying a ₹1,000 fee.
- Approval Process: The Government will review the application and issue conditional approval, specifying any dues, followed by final approval once dues are settled
- Post-Surrender Conditions: After surrender, the assignee or licensee will not be allowed to participate in auctions for the same service area and spectrum band for two years.
- No Refund on Surrendered Spectrum: There will be no refund of fees or charges after the surrender of spectrum.
Miscellaneous Provisions
- Compliance with Terms and Conditions: Spectrum assignees must adhere to all terms outlined in their SAL and ensure their network doesn’t interfere with other operators.
- Spectrum Restructuring or Transfer: Spectrum assignees may share, trade, or lease spectrum as per the Telecommunications (Sharing, Trading, and Leasing of Spectrum) Rules, 2025.
- Revocation of Licence: If the license of the assignee is revoked, the spectrum assignment will also be canceled, and the spectrum will revert to the Government.
Digital Implementation
The Government is likely to implement these rules through a digital portal. This portal will facilitate the submission of applications, publication of forms, and the issuance of approvals.
PUBLIC CONSULTATION:
The Government has invited objections or suggestions regarding the draft rules. The public has 30 days from the publication date in the Official Gazette ( March 2, 2025) to submit feedback. Interested parties should address their concerns to the Joint Secretary (Telecom), Department of Telecommunications, Ministry of Communications, Government of India.
