The proposed Spectrum Act envisaged by the department of telecommunications will seek to give powers to the Centre to withdraw or cancel unused spectrum assigned to service providers.
DoT has set up a committee to frame the proposed Act, which will have seven members with retired judge Justice Shivraj Patil as its chairman.
The committee will review and analyse the existing legislations relating to spectrum management and formulate a new comprehensive and integrated Act, according to an internal DoT note.
"The Spectrum Act will give the authority to withdraw or cancel spectrum assigned but not in use, during the course of regular monitoring," the note said.
The proposal for a Spectrum Act came in the wake of controversies related to the allocation of spectrum to new players in 2008 at a price determined in 2001.
The CAG had observed that it had caused a whopping Rs 1,76,000 crore (Rs 1,760 billion)
The new Act promises maximise efficient allocation and use of spectrum.
Besides, it will also provide a responsive and flexible approach to meeting the needs of the users of spectrum.
It will also provide a new regulatory environment that maximises opportunities to both the Indian telecom market and international markets.
The telecom ministry is also working on finalising the new telecom policy.
The Wireless Planning and Coordination wing of the DoT is currently handling all spectrum issues. WPC coordinates, assigns, plans and regulates spectrum.
However, in the absence of a detailed legal mechanism, the WPC wing has relied increasingly on the mechanism of administrative decisions and orders to manage spectrum, the note said.
There is a need for comprehensive legal basis for assignment, monitoring, valuation/pricing, relocation and withdrawal of spectrum.
The first meeting of the Spectrum Act drafting committee is scheduled for on Friday.
