Lanka Business Online

Airwaves On Sale

The government is planning to make the process of radio spectrum allocation to telecom firms more transparent in future. With the fast growth in wireless telecoms, some sectors are running out of spectrum space.rn
At one time however government had a policy of not charging high fees for spectrum, based on the principle that high start up costs would slow down network rollout.rn

rnThe billions of dollars paid for 3-G licenses in Europe made some firms virtually bankrupt.rn

rnBut auctioning is a transparent process of allocating resources.rn

rnConsultant to the Economic Reform Ministry, Prof. Rohan Samarajiva says the government is committed to increasing transparency in resource allocation and constraining the discretion available to officials to make decisions.rn

rnExperts say auctioning takes away the discretionary powers of officials and takes away the opportunities for private gain.rn

rnAuctions can also be combined with non-cash easily measured objective criteria such as net

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