2G Scam details by mnmgroup

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									2G
Presented By : Kunal Chhabra
               Latakshi Masrani
               Tushar Agrawal
WHAT IS 2G

  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 lacs crores
 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
CONTD...
  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
CONTD...
    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
CONTD...
   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

								
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