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Research Paper Towards 2G Spectrum

Research Paper towards 2G Spectrum

In 2007, at the time of Congress Government when the 2G network was about to be launch government was in a dilemma on what basis the Government should sell the frequencies to the telecom industry. There was only two option either to sell it on AUCTION or the basis of the tender "FIRST COME FIRST SERVE".

But the biggest problem was that if the government sell it on the auction it will result in a higher cost to the telecom industry, as a result, the call rates will be high and the second option was based on First Come First Serve, So to remove the unnecessary burden to the consumer, the government has opted for FCFS option.

What is tender or FCFS?

- In this method, the Government at a random fix a date and the value of the tender and whichever company comes first and pays such value the tender will be given to him.
This Government has sold the 2G frequency to some of the telecom players.
But after complete inspection and investigation government found that there is some default in the 2G spectrum, the default was that the tender was done by a fixing in which Congress government has fixed a pre-deal in which they have leaked all the details to some of the telecom players and has greases their palm.

A. Raja was the telecom minister at the time of scam but due to blames and questions from oppositions and court, he had decided for the resignation of the post.
The scam was the biggest one, as the NDA government started questioning on UPA government about the scam. It alleged that PM Manmohan Singh and Home Minister P. Chidambaram knew about the scam as well and thus is accused of shielding A. Raja. Subramaniam Swami, leader of Janta Dal(S) then filed a case against PM Manmohan Singh also in the Supreme Court followed by one against P. Chidambaram.

Controller and Auditor General (CAG) presented its report on the auctions and highlighted many irregularities in the same.

The CAG Report-

  • The report in its financial terms reported that policy followed by First come First Serve(FCFS) was not followed properly.
  • The entry fee was also calculated very low.
  • The report states that the entry fee was fixed on as same as that calculated in 2001 but should have been increased as the telecom market had grown in years that followed.
  • The CAG report focused on the procedural irregularities and undervaluation of Spectrum.
  • As a result, In 2012 The Supreme Court verdict that the UPA government has been accused of the scam, 122 licenses given out by DoT (Department of Telecom) under A. Raja over irregularities in the procedures followed.
Sources:-Analysis of various media channels (News18, NDTV Indian Express), Quora,Telecomtalk.info

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