2G

Presented By : Jagadish Babu Sajjan

Under Guidance Of : Prof. Mani Thomas
 Three primary benefits of 2G networks over their
predecessors were :
 Phone conversations were digitally encrypted;
 2G systems were significantly more efficient on
the spectrum allowing for far greater mobile
phone penetration levels;
 2G introduced data services for mobile, starting
with SMS text messages.
2G SCAM
 The 2G spectrum scam involved officials in the
government of India illegally undercharging mobile
telephony companies for frequency allocation licenses.
 The issuing of licenses occurred in 2008, but the scam
came to public notice when the Indian Income Tax
Department was investigating political lobbyist Nira
Radia.
 The discussion around the reactions to the 2G spectrum
scam became known in the media as the Nira Radia
tapes controversy.
BRIEF ABOUT THE 2G 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
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
 The CAG highlighted that the entire process of allocation of Unified Access
Service licences "lacked transparency" and was undertaken in an "arbitrary, unfair
and inequitable manner," in the process "flouting every canon of financial
propriety, rules and procedures.“

 The 77-page report of the CAG tabled in Parliament said due diligence was not
followed and even the recommendations of the telecom regulator TRAI were "not
followed in spirit".

 The report said the "presumptive" loss caused to the exchequer through spectrum
allocation to 122 licencees and 35 dual technology licences in 2007-08 was Rs
1,76,645 crore. It pegged the figures on the basis of 3G auction held earlier this
year in which the government mopped up over Rs 67,000 crore (Rs 670 billion).
THANK YOU