Parliamentary Panel Urges Clarity in Spectrum Auction to Avoid Past Financial Missteps

A Parliamentary panel has advised that airwaves sold to companies should have clearly defined end uses to prevent undue advantages, as seen in the past with Reliance Jio. The report emphasizes the need for transparency and efficiency in spectrum auctions to ensure fair usage and prevent financial misconduct.

A Parliamentary panel has recommended clear definition of airwave end use in sales to companies, aiming to prevent situations like the undue gains made by Reliance Jio from the BWA spectrum auction.

The Standing Committee on Communications and IT's report highlighted the importance of transparency in spectrum auction documents, citing a CAG report from 2015 that criticized deficiencies leading to a Rs 3,367 crore advantage for Reliance Jio Infocomm. Recommendations were made for alignment of migration pricing with current market rates to prevent unjustifiable financial advantages.

The panel advocated for robust monitoring mechanisms for service rollouts, with penalties for delays, to ensure efficient spectrum utilization. It stressed that post-auction reviews should be established to maintain adherence to auction terms, thereby enhancing transparency and public confidence in the process.

(With inputs from agencies.)