Spectrum auction challenged in Madras HC

A vacation bench of the Madras High Court on Tuesday issued notice to the telecom department and the Telecom Regulatory Authority on a petition challenging the guidelines issued by the centre on the auction of spectrum for broadband wireless access (BWA), alleging it was against the policy on pure internet service.

A vacation bench comprising Justice V Dhanapalan and Justice M Sathyanarayanan issued the notice on a public interest writ petition filed by VOICE Consumer Care Council challenging the guidelines for auction and allotment of spectrum for broadband wireless access.

The petition sought to declare the guidelines dated 1 August 2008, the consequential amendment dated 11 September 2008 and the memorandum relating to auction of BWA spectrum dated 12 December 2008 in so far as it related to pure internet services, as opposed to broadband policy 2004 and the fundamental rights to have access to information guaranteed under Article 19(1)(a) of the Constitution.

The notice is returnable on 13 January.

In its petition, the consumer body claimed that the policy relating to accessibility to telecommunications and the auction norms contradicted each other.

It also alleged that the union government was adopting double standards in its policy relating to internet services and the bid process for the auction.

While this will drive up cost of accessing BWA by 50 per cent to 60 per cent over the present rate to access the internet, the petitioner claimed, the reserve price of 50 per cent of the 3G reserve price was disproportionate and had no link with the objective sought to be achieved.

Also, the amended policy of 11 September had notified a minimum reserve price for BWA services in the `A', `B' and `C' categories at Rs80 crore, Rs40 crore and Rs15 crore, respectively, could be double the fixed reserve price if auctioned, it pointed out.

While the present cost for pure internet service was affordable and relatively accessible to the consumer, the petition said if the service under BWA was auctioned, it will only help to raise the cost of internet surfing, it said.

The petitioners claimed that internet service is a separate class by itself and that it cannot be coupled with other commercial ventures of the Government of India in spectrum allotment.

The PIL sought a court declaration that the guidelines for auction and allotment of spectrum for BWA as also its amendments and the memorandum were opposed to the centre's broadband policy and the fundamental right to the access of information as guaranteed under Article 19 of the Constitution.

The petitioner also sought an interim injunction restraining the centre from auctioning the BWA service in any manner.