(1)  The Central Government, being the owner of the spectrum on behalf of the people, shall assign the spectrum in accordance with this Act, and may notify a National Frequency Allocation Plan from time to time.

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

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

   (4)  The Central Government shall assign spectrum for telecommunication through auction except for entries listed in the First Schedule for which assignment shall be done by administrative process.

   Explanation.—For the purposes of this sub-section,—

   (a)  “administrative process” means assignment of spectrum without holding an auction;

   (b)  “auction” means a bid process for assignment of spectrum.

   (5)  (a) The Central Government may, by notification, amend the First Schedule for assignment of spectrum—

   (i)  in order to serve public interest; or

   (ii)  in order to perform government function; or

   (iii)  in cases where auction of spectrum is not the preferred mode of assignment due to technical or economic reasons.

   (b)  The notification referred to in clause (a) shall be laid before each House of Parliament.

   (6)  The Central Government, if it determines that it is necessary in the public interest so to do, may exempt,—

   (a)  from the requirement of assignment under sub-section (2), in such manner as may be prescribed; and

   (b)  by notification, specific usages within specified frequencies and parameters, from the requirements of sub-section (2).

   (7)  Any exemption with respect to use of spectrum granted under the Indian Telegraph Act, 1885 (13 of 1885) and the Indian Wireless Telegraphy Act, 1933 (17 of 1933) prior to the appointed day, shall continue under this Act, unless otherwise notified by the Central Government.

   (8)  Any spectrum assigned through the administrative process prior to the appointed day, shall continue to be valid on the terms and conditions on which it had been assigned, for a period of five years from the appointed day, or the date of expiry of such assignment, whichever is earlier.

   (9)  Any spectrum assigned through auction prior to the appointed day, shall continue to be valid on the terms and conditions on which it had been assigned.