2G SCAM

Spectrum:

 A spectrum is a collection of sine waves that, when combined properly; produce the time-
domain signal under examination.
 Spectrum monitoring is another important frequency-domain measurement activity.
 Government regulatory agencies allocate different frequencies for
various radio services, such as broadcast television and radio, mobile
phone systems, police and emergency communications, and a host of other applications.
 It is critical that each of these services operates at the assigned
frequency and stays within the allocated channel bandwidth.
 Now we are in the midst of 4G. In China, the 3G service came into existence only by last
February. Therefore, that it may take time for exposing to other states. But we should also
realize many other countries such as the Asian countries were using these services since
last decade. Due to these reasons, we can hope that the 4G may enter within a few years.
The 3G (Third Generation) had also reached India recently. There is no doubt that within
a few years India will be the first in telecom users also.

Overview of various generations:

 In 1G, Narrow band analogue wireless network is used, with this we can have the voice
calls and can send text messages.
 Both the 1G and 2G deals with voice calls and has to utilize the maximum bandwidth as
well as a limited till sending messages
 1G is that with this we could contact with in the premises of that particular nation, where
as in case of 2G the roaming facility a semi-global facility is available.
 In this 3G Wide Brand Wireless Network is used with which the clarity increases and
gives the perfection as like that of a real conversation. The data are sent through the
technology called Packet Switching.

 With the help of 3G, we can access many new services too. One such service is the
GLOBAL ROAMING. Another thing to be noted in case of 3G is that Wide Band Voice
Channel that is by this the world has been contracted to a little village because a person
can contact with other person located in any part of the world and can even send
messages too.

 Then the point to be noted is that 3G gives clarity of voice as well can talk without any
disturbance. Not only these but also have entertainments such as Fast Communication,
Internet, Mobile T.V, Video Conferencing, Video Calls, Multi Media Messaging Service
(MMS), 3D gaming, Multi-Gaming etc are also available with 3G phones.
Main 4G Features

Then with the case of Fourth Generation that is 4G in addition to that of the services of
3G some additional features such as Multi-Media Newspapers, also to watch T.V programs with
the clarity as to that of an ordinary T.V. In addition, we can send Data much faster than that of
the previous generations.

What is the reason for delay in implementing 3G and 4G Mobile services?

It is very sad to say that the 3G services had only reached with in some towns of china, so
that it may take time to reach to other countries. Another major defect of this is that Wide Band
Frequency Spectrum, which is needed for 3G, is lacking. Another reason for this is that it a cost
bearing item especially for sending data. So for us it is a higher one which could be used only by
upper classes. If it should be accepted among all customers, firstly it should be availed at a lower
rate, for which the rate of spectrum should be declined.

3G Spectrum allocation in India

 The 3G spectrum allocation in India began in April 2010 and 9 telecom operators like
Bharti, Vodafone, Reliance, Tata, Idea, Aircel, Videocon, STel, and Etilasat had
participated in the bidding. The government has earned a amount of Rs.67719 Crores
from the bidding of 3G spectrum. Additionally the government is expected to get
Rs.12000 from the BWA (Broadband Wireless Access) auction which is expected to
happen in the near future.
 Bharti Airtel being the highest bidder, it has spent around Rs.12000 crores and bagged
around 13 circles including Delhi, Karnataka, Mumbai, Andhra Pradesh, Tamil Nadu.
Vodafone has bagged around 9 circles, Tata’s 9 circles, Reliance 13 circles, Aircel 13
circles, Idea cellular 11 circles and STel 3 circles, while Videocon and Etilasat failed to
win the bid in even one circle.

 The CAG report also indicted the DoT for introducing dual technology in October 2007
“in a hasty and arbitrary manner”, which was in contravention of the Cabinet decision of
2003, resulting in additional spectrum being allotted to certain operators at 2001 price.

 It also faulted the DoT for allotting spectrum to the existing operators beyond the
contracted limits “without imposing any upfront charge”.

 The value of spectrum held by 13 operators for 51 circles based on 2001 rates worked out
to Rs 2,561 crore, against the market price band in the range of Rs 12,000 crore and Rs
37,000 crore, it said.
  Even as the DoT responded to the audit projection of a probable value for spectrum as “a
hypothetical arithmetic exercise and not correct”, the CAG said its attempt was only to
highlight that the price discovery of spectrum through a market mechanism would have
fetched a much higher value and thus augmented receipts for the Government.

Auctions for Spectrum Allocation in Developing Countries

U.S., England, Australia, New Zealand, and Canada

First-Price Sealed-Bid Auctions: (US, Canada)

 The simplest method and probably the most popular is the sealed bid format where
different telecommunications companies would bid for the right to use the airwaves using
a single sealed bid. This method is widely practiced in a number of industries, especially
in civil engineering works, and was the methodology of choice used in the first set of
cellular auctions in the telecommunications sector in India.

 There are two main advantages of the first-price sealed-bid auction: First, it is simple, and
merely involves all interested parties submitting a single bid for the resource that is being
auctioned. Secondly, it is economically efficient in that the resource, in this case the
license to use the spectrum, is given to the one who claims to value it the most.

 There are a number of problems also. There is no guarantee that the bidders will reveal
their true value for the resource. Thus, it may well be that a bidder who does not truly
value the resource the highest will obtain it.

Sealed-Bid Vickrey Auctions: (New Zealand, Australia)

The winner of an auction gets the resource but only has to pay the price of the second
highest bidder to obtain it. Second-price auctions like the first-price auction, the bids are sealed,
and each bidder is ignorant of other bids unless there is collusion. The item is awarded to highest
bidder at a price equal to the second-highest bid (or highest unsuccessful bid). In other words, a
winner pays less than the highest bid. If, for example, bidder A bids $10 million B bids $15
million and C offers $20 million, bidder C would win, however he would only pay the price of
the second-highest bid, namely $15 million.

Simultaneous Ascending Multiple Round Auctions (England)

 Another auction mechanism that takes care of the issue of transparency, and also fits the
Vickrey second-price framework is the simultaneous ascending multiple round (SAMR)
auction. The bidders bid on the resource in a round, and the auctioneer then raises the
minimum bid by an increment and allows the bidders to bid again in the subsequent
round.

 The auction stops when no bidder accepts the auctioneer’s increment and revises his bid
upward. This is very similar to the English auction. The main difference between a
 SAMR auction and an English auction is that the latter is an open-cry auction while the
former need not be.

According to me key people in 2G:

 Mr. Raja
 Mr. Manmohan Singh
 Mr. Chidhambaram
 Mr. Subramaniya Swamy
 Mr. Arun Shourie
 Mr. Pramod Mahajan
 Mr. Siddhartha Behura
 Mr. Pradip Baijal
 Mr. R.K. Chandolia
 Mrs. Nira Radia
 Mr. Barkha Dutt
 Mr.shahid balwa
 Mr.sarath kumar(kalaingar tv)

WHAT ARE 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 licenses

Nira Radia:

 She had built a 3-billion rupee business empire within a short span of nine years.
 The complaint had also alleged that Radia was indulging in anti-national activities and
that she was acting as a spy of foreign intelligence agencies.
 The court heard Tata group chairman Ratan Tata’s petition which sought stoppage of
further publication of the leaked conversations between him and Radia.

National Telecom Policy 1994 (NTP-94)

The National Telecom Policy was announced in 1994 which aimed at improving India's
competitiveness in the global market and provides a base for a rapid growth in exports. This
policy eventually facilitated the emergence of Internet services in India on the back of
established basic telephony communication network. This policy also paved way for the entry of
the private sector in telephone services.

The main objectives of the policy were:

  To ensure telecommunication is within the reach of all, that is, to ensure availability of
telephone on demand as early as possible

 To achieve universal service covering all villages, that is, enable all people to access
certain basic telecom services at affordable and reasonable prices

 To ensure world-class telecom services. Remove consumer complaints, resolve disputes

and encourage public interface and provide a wide permissible range of services to meet
the demand at reasonable prices

 To ensure that India emerges as a major manufacturing base and major exporter of
telecom equipment

 To protect the defense and security interests of the nation.

The policy also announced a series of specific targets to be achieved by 1997 and further
recognized that to achieve these targets the private sector association and investment would be
required to bridge the resource gap.

Establishment of TRAI

The entry of private players necessitated independent regulation in the sector; therefore,
the TRAI was established in 1997 to regulate telecom services, for fixation/revision of tariffs,
and also to fulfill the commitments made when India joined the World Trade Organization
(WTO) in 1995. The establishment of TRAI was a positive step as it separated the regulatory
function from policy-making and operation, which continued to be under the purview of the
DoT2.

The functions allotted to the TRAI included:

a. To recommend the need and timing for introduction of new service provider

b. To protect the interest of customers of telecom services

c. To settle disputes between service providers

d. To recommend the terms and conditions of license to a service provider

e. To render advice to the Central government on matters relating to the development of

telecommunication technology and any other matter applicable to the telecommunication
industry in general.
New Telecom Policy 1999 (NTP-99)

In recognisation of the fact that the entry of the private sector, which was envisaged during
NTP-94, was not satisfactory and in response to the concerns of the private operators and
investors about the viability of their business due to non realization of targeted revenues the
government decided to come up with a new telecom policy. Moreover, convergence of both
markets and technologies required realignment of the industry. To achieve India’s vision of
becoming an IT superpower along with developing a world class telecom infrastructure in the
country, there was a need to develop a new telecom policy framework. Accordingly, the NTP
1999 was framed with the following objectives and targets:

 Availability of affordable and effective communication for citizens was at the core of the
vision and goal of the new telecom policy

 Provide a balance between provision of universal service to all uncovered areas,

including rural areas, and the provision of high-level services capable of meeting the
needs of the economy

 Encourage development of telecommunication facilities in remote, hilly and tribal areas

of the nation

 To facilitate India’s journey to becoming an IT superpower by creating a modern and

efficient telecommunication infrastructure taking into account the convergence of IT,
media, telecom and consumer electronics

 Convert PCOs, wherever justified, into public telephone information centers having
multimedia capability such as ISDN services, remote database access, government and
community information systems etc

 To bring about a competitive environment in both urban and rural areas by providing
equal opportunities and level playing field for all players

 Providing a thrust to build world-class manufacturing capabilities and also strengthen

research and development efforts in the country

 Achieve efficiency and transparency in spectrum management

 Protect the defense and security interests of the country

 Enable Indian telecom companies to become global players.

Governance Issue for Government:

 Operators such as Reliance Communications, Uninor, Videocon, STel, Tata Teleservices
and Etisalat DB were given 4.4 MHz and are eligible for another 1.8 MHz under the
existing rules. But the new policy will force them to pay for the additional 1.8 MHz.
 While the Telecom Regulatory Authority of India is yet to give its recommendations on
pricing spectrum, analysts estimate that the new players may have to cough up an
additional Rs 2,000-3,000 crore for taking their total quantum of air waves to 6.2 MHz
pan-India.
 While new players have to pay for anything over 4.4 MHz, the incumbent players need to
pay only if they hold more than 6.2 MHz.
 Tata Teleservices said that they were promised 6.2 MHz and that should be given to
them.
Respected Sir,

I want to discuss my opinion with your permission by asking some questions which are
below mentioned:

 Yes, I agree Mr. Raja and DMK had made a mistake, really they only involved in the 2G
scam?
 Mr. Manmohan Singh said that, I can’t abject certain things in coalition government. Ok
sir, but what about ISRO Scam, CWG Scam?
 Instead of accepting JPC now Why Congress didn’t accept JPC before?
 Why Mr. Chidhambaram not questioned? He said that no violation in 2G allocation
method-15th January 2008.
 How he sanction Rs.8000 crore loan amount for Unitech?
 If FCFS method is wrong, why it’s not questioned for past 9 years? When it’s
implemented by BJP?
 CAG Report says Rs. 36000 crore losses for government in allocation of spectrum during
2001-2004. Why Mr. Arun Shourie not questioned?
 Why Mr. Subramaniya Swamy only targeting Mr. Raja?
 Who is really behind Mr. Subramaniya Swamy?
 Is there any role for caste (Mr. Raja-SC)?
 What about Mrs. Nira Radia? Why she is not arrested by CBI?

Questions to Think:

 Contradiction between CBI and CAG, How CBI going to submit the report to the court
on or before 31st March 2011?
 Whether Mr. Raja is third rate criminal?
 Why CBI treated him as a third rate criminal?
 Really Mr. Raja and DMK is the only reason for loss of government?
 Mr. ratan tata has filed a case in the court that the telephone conversation must not be
realeased,why?