HAPPY VALENTINES DAY

SPECTRUM"RAJA"

WHAT IS SPECTRUM 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
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 licences