The Supreme Court registry rejected an application submitted by the Union government, which sought permission to allocate spectrum and other natural resources through means other than auctions.

Despite the rejection, officials from the Department of Telecommunications (DoT) have stated that the government intends to proceed with the allocation of spectrum for satellite broadband to companies like Elon Musk's Starlink and Sunil Mittal's OneWeb under the provisions of the Telecommunications Act 2023.

Officials emphasized that the rejection of the clarification did not hinder the government's plans nor did it constrain its actions. They highlighted that the Telecom Act 2023 has overridden the Supreme Court's 2012 verdict, enabling the government to move forward with its objectives.

The Centre had submitted the application to seek clarification on the 2012 judgment by the apex court in the 2G spectrum scandal case. This judgment mandated that spectrum and other natural resources should only be sold through public auctions, rather than through a first-come-first-served basis.

In response to a Presidential reference, the apex court clarified that the verdict was specific to the 2G spectrum case and did not constitute a blanket statement applicable to all natural resources.

The 2023 Act stipulates that "the Central Government, as the custodian of spectrum on behalf of the public, shall allocate the spectrum as outlined in this Act, and may periodically release a National Frequency Allocation Plan.

Any person intending to use spectrum shall require an assignment from the Central Government.

The Central Government may prescribe such terms and conditions as may be applicable, for the assignment of spectrum, including the frequency range, methodology for pricing, price, fees and charges, payment mechanism, duration, and procedure for the same.

As per the first schedule, the Centre can administratively allocate spectrum to 19 sectors outside of auctions.