What is Scandal of 2G Spectrum?

Answer 1

THE SPECTRUM SCAM

• 2G licenses issued to private telecom players at throwaway prices in 2008
• CAG: Spectrum scam has cost the government Rs. 1.76 lakh crore
• CAG: Rules and procedures flouted while issuing licenses

THE CHARGES ON FORMER TELECOM MINISTER A RAJA?

CHEAP TELECOM LICENSES

• Entry fee for spectrum licenses in 2008 pegged at 2001 prices
• Mobile subscriber base had shot up to 350 million in 2008 from 4 million in 2001

NO PROCEDURES FOLLOWED

• Rules changed after the game had begun
• Cut-off date for applications advanced by a week
• Licenses issued on a first-come-first-served basis
• No proper auction process followed, no bids invited
• Raja ignored advice of TRAI, Law Ministry, Finance Ministry
• TRAI had recommended auctioning of spectrum at market rates

FAVOURITISM, CORPORATES ENCASH PREMIUM

• Unitech, Swan Telecom got licenses without any prior telecom experience
• Swan Telecom given license even though it did not meet eligibility criteria
• Swan got license for Rs. 1537 crore, sold 45% stake to Etisalat for Rs. 4200 crore
• Unitech Wireless got license for Rs. 1661 crore, sold 60% stake for Rs. 6200 crore
• All nine companies paid DoT only Rs. 10,772 crore for 2G licences