New Delhi, Nov. 21: The government is likely to sell all spectrum in the future through a transparent auction method. Spectrum — radio waves over which mobile calls travel — is a scarce resource.

“Given the current controversy over the under-pricing of 2G spectrum and the success of 3G auctions, the thinking in the telecom ministry is that auctions are the best way to arrive at the true value of spectrum. This is likely to be applied for all future sale of spectrum, including 4G,” said sources.

The Prime Minister’s Office and the finance ministry have been in favour of the auction route, in line with global practice. Their firm stand resulted in the successful sale of 3G and broadband wireless radio waves, that fetched the government Rs 1 lakh crore.

The Telecom Regulatory Authority of India (Trai) is working on the pricing of additional 2G spectrum, beyond the 4.4 megahertz given to mobile players to start services.

The regulator has also started a consultation paper on the sale of fourth generation (4G) spectrum that enables faster data speeds.

At present, operators are eligible for additional 2G spectrum through a subscriber based criteria.

However, fresh allotment of 2G spectrum, which is used by all operators for voice services, is on hold till the ministry arrives at a decision on the pricing.

According to Economic Survey 2008-09, the auction of 2G spectrum will improve the investment environment and drive growth in telecom.

The Subodh Kumar committee — appointed by the department of telecom — in its report has proposed that 2G spectrum should be auctioned, as was done in most countries, and not allocated based on subscriber criteria. It also proposed that only the start-up spectrum, which is the minimum amount required to launch services, should be given free.

Operators feel auctions can raise the cost of services and affect customers. However, Tata DoCoMo has launched the 3G service recently at tariffs of less than a rupee per minute.

After the success of the 3G spectrum sale, many states are eager to implement the auction model for coal, natural gas, liquor licences and land contracts.

“Ministry officials are of the opinion that auction not only fetches the best price for an asset it also ensures that the buyer utilises the spectrum in an efficient manner,” said sources.

An efficient utilisation of the resource is important because of the limited availability of spectrum and an increasing demand from service providers.

According to Trai, the country has over 670 million cell connections, with more than 15 million taking a connection every month.