Explanation –

Statement 1 is incorrect. In India, spectrum allocation is not only done through administrative allocation. Auctions have become the primary method for allocating spectrum for mobile services. The 2012 2G spectrum case judgment by the Supreme Court held that the allocation of spectrum, being a scarce natural resource, must be done through auctions. However, the government considers administrative allocation of spectrum to ensure it is available for public interest functions such as security, safety, and disaster preparedness, where auctions may not be optimal.

Statement 2 is correct. Spectrum allocation in India is a regulated process overseen by the Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (TRAI). This ensures fair and efficient use of this limited resource.

Source: The Hindu