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The Economic Survey 2008-09 released in parliament on Thursday has demanded to put an end to the debate surrounding the allocating of radio frequency by advocating an auction process that is open and transparent.
It said that the capital gains from traded spectrum should be taxed under the Income Tax Act.
"The auction price can be in the form of a fixed price or charge per unit of bandwidth per annum or a combination of the two," it added.
The survey has also demanded for the providing different treatment to the licences and spectrum fee.
This means that the new telecom operators will have to pay separately for the license and the spectrum. Now the license comes along with a spectrum of 4.4MHz at a price of Rs.1,650 crore fro both wireless as well as wired operators.
The aim of unbundling the spectrum is for the enabling of the Internet service providers to migrate to the unified access category and start offering Internet telephony.
The survey noted the fast paced growth in the sector that has made India's telecom network the third largest in the world, and its wireless network the second largest.
