Presented by:-

Priya john
What is 2G?
It is a term used in telecommunication sector. It is a
spectrum which support 2G technology. High
bandwidth is required for this purpose. 2G means
second-generation wireless telephone technology.
Second generation 2G cellular telecom networks were
commercially launched on the GSM standard in
Finland in 1991. 2G introduced data services for
mobile, starting with SMS text messages.
What is 2G Spectrum Scan?
Acc. To comptroller and auditor general (CAG) –
 2G licenses issued to private telecom players at
throwaway prices in 2008
2G spectrum allocation had caused revenue loss of Rs
1.76 lakh crore
Rules and procedures flouted while issuing licenses.
What is CAG?
The CAG is a typical file-based government auditing
agency.
It stresses on reporting deviations from set
procedures and policies and fails to recognize that the
deviations have resulted in speeding up economic
growth.
CAG Report on 2G Scam:
Here are some of the points made by the CAG Report:

• 85 firms suppressed facts, gave fictitious papers to DOT.

• DOT kept spectrum pricing issue out of GoM's purview A
Raja ignored Prime Minister's, FM's and Law Ministry's
advice.
• Spectrum was rare national asset, should have been
auctioned.
• 2G spectrum allocated to new players at throwaway prices
Undue advantage to Swan Telecom in allocation of
spectrum.
• Email ID of Swan Telecom shown as that of a Reliance
ADA group official.
Contd…:
Spectrum allocated beyond contracted quantity to 9 firms
including Bharti , Vodafone, Idea, BSNL, Reliance, Aircel
Idea and Spice not given spectrum on grounds of
proposed merger- this was against the rules.
Allocation of 2G spectrum led to loss of Rs. 1.76 lakh crore.
DoT did not follow its own practise of first-come-first-
serve in letter and spirit.
Calculation of loss based on 3G auction earlier this year.
Cut-off date for license letters advanced arbitrarily by a
week This went against time-tested procedures of
government functioning.
Entire process lacked transparency, Undertaken in
arbitrary and inequitable manner.
CAG indicts Unitech Wireless:
• Unitech has got licence for 22 circle’s and it paid the
Rs.1658 crore licence fees for each circle but the
company sale their 67.25% eqity for Rs.6120 crore to
the telenor a company of Norvay.
• Telenor has valued the spectrum of the company.
• CAG said that if we see this deal then the fees for the
allotment of licence is between Rs.7758 crore to
Rs.9100 crore on the other way if it was not their then
the govt. will get the fees between Rs.58000 crore to
Rs.68000 crore for the 122 licence .
Who is A. Raja?
Andimuthu Raja has come a long way from being a
lawyer in rural Tamil Nadu.
The former Communication minister who make the
2G spectrum scam
Alloted the licence which are given in 2008 at 2001
prices of Rs. 1,658 crore .
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.
Contd….:
• 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