Advertisement


Advertisement

Thread Rating:
  • 7 Vote(s) - 2.71 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Not auctioning 2G spectrum costs govt
Advertisement
#1
NEW DELHI: Various figures for the loss to the exchequer due to 2G spectrum not being auctioned have been tossed about, ranging from Rs 20,000 crore to Rs 50,000. Actually, the figure is over Rs 100,000 crore, when one considers the revenue earned by the 3G spectrum auction and regulator Trai’s recommendations, issued on May 11, that “3G prices be adopted as the current price of spectrum in the 1800 MHz (2G) ban.”

Interestingly, contrary to popular belief, Prime Minister Manmohan Singh did not defend telecom minister A Raja at a press conference on Monday, but instead, made two leading statements distancing himself from Raja’s deeds.

Significantly, the PM’s words were also radically different from the stance taken by the Congress party’s spin-doctors so far. The PM said Raja had told him that he followed the existing policy, Trai recommendations, and the Telecom Commission’s decision. The PM was careful to attribute these comments to Raja rather than use them in his defense.

More importantly, Singh admitted to a huge gap in revenues between 2G spectrum allocation, which followed a first-come-first-served (FCFS) policy and 3G spectrum which was auctioned in an open, transparent manner.

A detailed calculation shows this gap or revenue loss that the PM was referring to, to be upwards of Rs 1 lakh crore (see chart). Singh also left the door open on appropriate action in case there was a hint of corruption, following the ongoing CBI investigation/FIR in the 2G spectrum scam.

In 2008, soon after being awarded 2G licences with 4.4 MHz of spectrum at a 2001 pan-India price of Rs 1,658 crore, Swan and Unitech were able to close equity deals at six to seven times this value with Etisalat and Telenor respectively.
ET
Reply
Thanks given by:
Advertisement
Advertisement




Possibly Related Threads...
Thread Author Replies Views Last Post
  General News: Govt launches National Broadband Mission nairrk 0 303 12-19-2019, 07:50 AM
Last Post: nairrk
  General News: DoT plans to allot E, V band spectrum through auction nairrk 0 615 12-18-2017, 12:27 PM
Last Post: nairrk
  General News: Govt imposes 10% customs duty on imported mobile phones nairrk 0 634 07-01-2017, 01:41 PM
Last Post: nairrk
  General News: Govt mulling to make 2 Mbps as minimum broadband speed: Report nairrk 0 673 08-20-2016, 12:32 PM
Last Post: nairrk
  Breaking News: Govt grants regulatory approval for Nextbit Robin to be sold in India rahul1117_kumar 0 428 05-06-2016, 06:38 PM
Last Post: rahul1117_kumar
  Breaking News: Apple to set up own retail outlets soon as Govt may waive 30% sourcing norm: Report rahul1117_kumar 0 428 04-22-2016, 11:39 AM
Last Post: rahul1117_kumar
  Breaking News: iPhone SE costs Apple only Rs 10,500 to make, claims IHS rahul1117_kumar 0 394 04-05-2016, 11:15 AM
Last Post: rahul1117_kumar
  Breaking News: MTNL receives Rs 429 crore for surrendering the 800 MHz spectrum band rahul1117_kumar 0 481 04-02-2016, 12:27 AM
Last Post: rahul1117_kumar
  Breaking News: This Garmin GPS watch costs a whopping Rs 84,999 rahul1117_kumar 0 489 03-29-2016, 12:29 AM
Last Post: rahul1117_kumar
  Breaking News: Apple watch gets a price cut, now costs $299 in the US rahul1117_kumar 0 411 03-22-2016, 12:03 AM
Last Post: rahul1117_kumar

Forum Jump:


Users browsing this thread: 1 Guest(s)
Advertisement