Spectrum Was Sold Like Cinema Tickets

SPECTRUM WAS SOLD LIKE CINEMA TICKETS THE SETTING THE DOT HAS TO ENSURE THAT 2G or second generation wireless telephone technology is a digital network for transmission of voice (calls) and data (SMS, Internet, etc). "Wireless' means that the voice and data are Adequate spectrum is made available 1 The government earns revenue from the sale of the spectrum to different cell transmitted through electromagnetic radiations. The 2G spectrum is a band of frequencies, much like a "rainbow" which is a spectrum of light. phone companies The spectrum allocation process is equitable, optimum and transparent THE ROAD MAP TO THE 2G SPECTRUM SCAM THE STORY BEGINS : THE DRAMA : WHERE THE MONEY WENT : SWAN TELECOM (TO ETISALAT ) UNITECH WIRELESS (TO TELENOR) NO FIRST-COME FIRST-SERVE ITS FIRST PAY FIRST SERVE SHARE SOLD SHARE SOLD 45% = Rs 4,2o0 60% = Rs 6,200 RORE 5RORE PAN-INDIA LICENCE FEE RS. 1,658 CR SCRORE LICENCE BOUGHT LICENCE BOUGHT = Rs.1537 CRORE = Rs.1,661 CRORE TATA TELESERVICE ( TO DOCOMO) SHARE SOLD 26% = Rs 13,230 CRORE OPEN TOTAL STAKES VALUE (AFTER RESALE) = RS 70,022 CRORE DoT RECIEVED = RS 10,772 CRORE DoT LOST = RS 60,000 CRORE 2007 MAY 2008 JANUARY 2007 SEPTEMBER-OCTOBER A Raja becomes the UPA 1 telecom Pan-India licence fee for spectrum allocations fixed at Rs. 1,658 crore. First-come-first-serve . SWAN Telecom (front company for Reliance Telecom, according to CAG) sells 45 percent of its shares to Etisalat (a UAE company) for minister 2007 SEPTEMBER definition altered to First-pay-first-serve lead- SWAN Communications, Unitech, Loop ing to fist fights in Sanchar Bhavan on who could pay first. . The total value of stakes (after resale) in the nine companies that had 2G approximately Rs 4,200 crore. SWAN bought its and DATACOMM apply for 2G allot- spectrum licence for a mere Rs. 1,537 crore. . Unitech Wireless sold 60 percent of its shares to Telenor (a Norwegian companyl forRs 6,200 crore. Unitech bought the spectrum licence for Rs 1,661 ments 2008 APRIL licences amounted to: Rs 70,022 crore. 2007 OCTOBER . For the same licences, the DoT had received only Rs 10,772 crore. DoT, under A Raja's charge, circumvents TRAI A Raja rules out 2G spectrum auction, openly ignoring the TRAI's recommen- dations on the distribution recommendations to allow for sale of stakes in crore. . By allowing the resale of stakes, DoT companies. These changes in the guidelines would result in huge losses to the DoT and . Tata Teleservices sells 26 percent of its shares to DoCoMo la Japanese company) for Rs 13,230 crore. lost more than Rs 60,000 crore. ultimately the Indian public. 2009 MAY : plication cut-off date to September from October 2007. 2009 OCTOBER: - S Tel files a case in Delhi High Court, accusing DoT of bias. The The CBI raids DoT offices in con- DoT prepares a detailed report on 2G spectrum allocation methodology and pricing. THE FALL . DoT filed a false affidavit in the HC, claiming that Raja had received nection with alleged irregularities in allocation of 2G spectrum and lodges a case . Manmohan Singh states that the allegations of a scam in the spec- trum Delhi HC rules in favour of S Tel; charges the DoT of bias in allotting 26 licences since it changed the ap- the PM's agreement in allotting spectrum, including the change in cut-off date. 2008 NOVEMBER : . The CVC investigates and sends a detailed report to PM Manmohan Singh, reiterating the demand for Raja's pros- SAKE RAJA trum allocation are incorrect - BJP General Secretary Arun Jaitely demands that A Raja be ecution. sacked for his controversial role in the allocation of 2G spectrum. Raja tells Telecom Commis- sion to ban sale of promoters' equity after the SWAN and 2009 DECEMBER 2009 NOVEMBER : . Under fire, DoT proposes a 1 percentage point increase in the - DoT appeals to the Supreme Court against the orders of the Delhi HC passed on 24 November Unitech deals. DoT CBI 2009 APRIL : .....BAN SALE OF 2009. CVC Pratyush Sinha recon- firms large-scale irregulari- ties by DoT in awarding spec- spectrum usage charge paid by telecom operators to make up for the revenue loss. The move if executed could . Yet another case alleging bias by DoT filed in Delhi HC by petitioner Arvind Gupta. He contended that violations were apparent in the case of SWAN Telecom and six subsid- iaries owned by Unitech. PROMOTER'S EQUITY trum licences potentially earn DoT Rs 4,000 crore. THE NATION WAKES UP 2010 APRIL: . Uproar in Parliament over media reports and tapes pointing to A Raja's acquain- tance with a powerful PR lobbyist Niira Radia. Radia allegedly brokered deals for Tata and RCom during the SC 3G 2GY- EARN RS67.718 CRORE spectrum allocation. 2G CBI 3G 2010 MAY: EARN L Government nets a whopping Rs 67,718 crore after the 3G auction ends thus furthering suspicion of gross under-pricing during the 2G spectrum allocation. Rs 67.718 CRORE 2008 NOVEMBER : telecom licences and plans to re- cover the losses using other meth- ods. 2010 OCTOBER : tion's demands for a Joint Parlia- mentary Committee (JPC) probe as unacceptable. Both Houses ad- journed over the demands for a JPC probe. - Manmohan Singh criticised by Supreme Court for his silence on the 2G scam. Janata Party's Subra- manian Swamy also reveals that he tinues as the government refuses had asked for A Raja's prosecution 16 months before the SC censure. - Supreme Court asks the government to respond to the CAG report on 2G spectrum Telecom ministry debunks the CAG report's claims. . Parliament witnesses uproar . Prime Minister's office sends an 11-page affidavit in reply to Su- preme Court's questions over Man- mohan Singh's silence. allocation scam. over 2G scam - CAG report estimates losses to the exchequer worth Rs. 1.39 trillion. - A Raja defies allegations and re- fuses to resign. But is forced to quit after things heat up between coali- tion partners Congress and DMK 2010 AUGUST : - The stalemate in Parliament con- A Raja refutes corruption charges levelled in the 2G EXTRALEXTRA - Supreme Court reprimands CBI for loopholes in its investi- gation of the 2G scam. to cede to opposition's demand for a JPC. scam. Congress hands HRD Minister Kapil Sibal charge of the telecom ministry while terming the opposi- - DoT decides against cancelling Tehelka