To auction or allocate: The spectrum debate in the satellite era

In the case of 2G spectrum allocation, while the rest of the world was auctioning spectrum–with the United Kingdom realising a spectacular sum of £22.5 billion in 2001, albeit leading to several telecom firms going bankrupt—India was allotting spectrum in January 2008 at 2001 prices. This decision contributed significantly to the downfall of the UPA government in the 2014 elections. The then Union Minister A Raja justified the allocation, claiming adherence to the recommendations of the Telecom Regulatory Authority of India (TRAI). However, after some equivocation, the then TRAI chairman admitted that despite unprecedented growth of the telecom sector from 2001 to 2008, TRAI had recommended retaining the prices discovered in 2001 auction without revision for the sake of providing a level playing field.