Spectrum is valuable resource, its not for charity: SC

NEW DELHI: Spectrum is a valuable national resource and is not for charity, the Supreme Court today said while questioning the government for allocating additional spectrum to GSM telecom operators allegedly free of cost.

"What is the reason for giving free of cost spectrum to companies? It is not for charity," a bench headed by Justice G S Singhvi said while noting that "spectrum is taken by the Centre from army on the name of developing telecom sector and to provide service to common man."

"Price of spectrum is thousands of crores. It is a national resource and it cannot be alloted free of cost. You must follow due procedure for allocation of natural resources," the bench said.

It also imposed a cost of Rs one lakh each on Centre and seven telecom companies, including Bharti, Vodafone, Reliance and Idea Cellular, for not filing their response during the last one year on a plea challenging allotment of excess spectrum.

"More than a year has passed but you have filed counter. The issues raised in the petition are serious and requires serious consideration," the bench said asking the parties to deposit the money in Supreme Court Legal Services Authority.

The court was hearing a petition seeking cancellation of 2G spectrum beyond 2x4.5 MHz for metros and 2x4.4 MHz for other circles allocated since 1996 to the telcos without charging additional fee.

The petitioner alleged that while allotting additional spectrum, the Centre ignored its own order of February 1, 2002, which said that "additional allocation could be considered only after a suitable subscriber base, as may be prescribed, is reached."