The Telecom Ministry has set up a panel that will frame an Act on spectrum pricing and allocation to ensure efficient use of radio waves, amid controversy on such issues related to the 2G services.

The ministry is in the process of finalising the New Telecom Policy, 2011 and wants to formulate rules on efficient allocation and use of spectrum.

A committee has been constituted to frame the Spectrum Act under the retired Judge Shivraj Patil, according to an internal note by the Department of Telecom (DoT).

"The Act will have objectives to maximise, by ensuring the efficient allocation and use of the spectrum, the overall public benefit derived from using the radio frequency spectrum, make adequate provision of the spectrum for use by public or community services," the note said.

In April, Telecom Minister Kapil Sibal, while announcing the contours of NTP-2011, had mentioned about the formulation of national Spectrum Act.

The proposal to form the Act came amid huge shortage of spectrum for the telecom sector and the asset not being used properly by various operators.

The note said the idea behind the move is to to provide a responsive and flexible approach to meeting the needs of users of spectrum, and to encourage the use of efficient radio technologies so that a wider range of quality services can be offered to the people.

The note also aims at "equitable and transparent system of charging for the use of spectrum, taking account of the value of both commercial and non-commercial use of spectrum."

It also calls for providing a regulatory environment that maximises opportunities for the communications industry to promote India's interests in international agreements and treaties.