How do you write an essay about 2G spectrum scam?

Answer 1

2G and Scam

What is 2G?

2G is the abbreviation for Second Generation wireless telephone technology. The main benefits of 2G are that phone conversations are digitally encrypted. 2G systems are far more efficient on the spectrum allowing for greater mobile phone access levels, 2G also introduces data services for mobiles.

What is spectrum scam?

From the time of charge of misuse during the bidding for allocation of 2G spectrum surfaced, till Telecom Minister A. Raja's ouster, high drama charged both politics in Delhi and Tamil Nadu. • Spectrum scam cost the government ₨. 1.76 lakh crore • 2G licences issued to private telecom players at throwaway prices in 2008 • Rules and procedures flouted while issuing licences

The charges on Former Telecom Minister A. Raja

Cheap Telecom Licences:

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

None of the procedures were followed:

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

The opposition further stepped up its attack with two examples on 2G auction:

A new player, Swan Telecom, bought licences for 13 circles with the necessary spectrum for $340 million but managed to sell a 45-percent stake in the company to UAE's Etisalat for $900 million. This swelled its valuation to $2 billion without a single subscriber.

Out of the 122 new licenses that were given out, 85 licenses were won by companies that did not meet the eligibility criteria. Six of the Unitech group companies which applied for licenses for 20 circles did not meet requirements.

Parties accused because of their involvement

The selling of the licenses brought attention to three groups of entities - politicians and bureaucrats who had the authority to sell licenses, corporations who were buying the licenses and media professionals who mediated between the politicians and the corporations.

Politicians involved

§ A. Raja - the Minister of Communications and Information Technology who sold the licenses

§ M. K. Kanimozhi - Rajya Sabha MP

§ P. Chidambaram - The Then Minister of Finance and current Minister of Home Affairs - alleged to be involved with A. Raja in spectrum pricing and equity dilution by telecom operators that received spectrum

Bureaucrats involved

§ Siddharth Behura - Former Telecom Secretary

§ RK Chandolia - Raja's private secretary

Corporate Executives involved

§ Gautam Doshi - Managing Director of Reliance Anil Dhirubhai Ambani Group

§ Surendra Pipara - senior vice- President of Anil Dhirubhai Ambani Group and Reliance Telecom

§ Hari Nair - senior vice-president of Anil Dhirubhai Ambani Group

§ Sanjay Chandra - Managing Director of Unitech Wireless (Tamil Nadu) Ltd

§ Shahid Balwa - Swan Telecom promoter

§ Vinod Goenka - Swan Telecom promoter

§ Sharath Kumar - Managing Director of Kalaignar TV