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What is Scandal of 2G Spectrum?

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Anonymous

14y ago
Updated: 8/18/2019

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
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Wiki User

14y ago

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