2G is short for second-generation wireless telephone technology.

It was commercially launched on the GSM standard in Finland in 1991.

In 2008,the UPA, issued 122 new telecom licenses to several domestic companies with little or no experience in telecom sector, and at a price set in 2001.

The shortfall between the money collected and the money which the law mandates to be collected is 1.76 lakh crore rupees.

Category Loss as per CAG New 2G value(Rs.in Crore)

Loss based on Trai’s new2G Value(Rs. In crore)

122 New licences 1,02,498 54,323.9

35 Dual Tech Licences

37,154 19,691.6

Spectrum Held in Excess of 6.2MHZ

36,993 50,310.5

Total Loss 1,76,645 1,24,326.0

Source:CAG report,Nov 2011&TRAI Report on 2G spectrum of Feb 2011

Comptroller and auditor General of India

Central Bureau of Investigation

Central Vigilance Commission Directorate of

Enforcement

WHAT IS SPECTRUM WHAT IS SPECTRUM SCAM?SCAM?

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

WHAT ARE THE CHARGES ON WHAT ARE THE CHARGES ON FORMER TELECOM MINISTER A FORMER TELECOM MINISTER A

RAJARAJA??

1. 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

Reliance CommunicationsSistema Shyam Mobile (MTS)

– Sistema Mobile RussiaTata CommunicationsVodafone EssarDishnet WirelessAllianz In

2. 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 licenses

 

CULPRITSCULPRITS

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