Saturday, 21 May 2011

Details about 2G Spectrum Scam

Details about 2G Spectrum Scam

What is 2G?

2G is short form for second generation wireless telephone technology which is commercially launched on the GSM standard. The primary benefit of using 2G is the phone conversations were digitally encrypted. Radio signals in 2 G are digital. Even after launch of 3G spectrum, 2G spectrum is in use of many of parts of the world. The one big advantage of using 2G spectrum is the lower power emissions in concern to our health. SMS and email are digitalized. The analog system helped to have two or more cloned handsets with same phone number. Privacy protected which is in comparison with 1G phones, which have no protection against eavesdropping. After the launch of 2G spectrum, 1 G network is really dubbed. Even 2G has its own disadvantages. Weaker digital signals in less populous areas. Sometimes very poor quality of sound the digital technology did not sound good under bad conditions.

What is 2 G Spectrum Scam?

Nowadays wherever you see 2G Scam is on news. Do you know what is 2G Spectrum Scam. Let us see what this is actually. 2G spectrum scam is illegally undercharging mobile telephony companies for allotting licenses. In India, the politicians who had the authority to sell the license had favoured the companies, by whom they had been benefited. During 2008, 2G licences issued to private telecom players at throw away price. Former Telecom Minister A.Raja has been accuse for the bidding scam. This Spectrum Scam led the Government a heavy loss of Rs.1.76 lakh crore. Rules and procedures were broken while issuing the licenses. In the controversial 2G spectrum is revolving heavily around the Former Telecom Minister A. Raja. Mr. Raja, an MP of the Dravida Munnetra Kazhagam (DMK) resigned after heavy drama between the Tamilnadu Government and Central (Delhi).Tapes were recorded and leaked by the government authorities, about the conversation with politician and corporates involved in this scam.

Charges on Former Telecom Minister A. Raja

A. Raja sold the 2G Spectrum licenses below market value. First the entry fee for spectrum licenses pegged at 2001 prices. License given very cheaply. No procedures followed. Even the application due date also closed before one week. No bids and auction were followed. Even Raja ignored the advice of TRAI, Finance Ministry and Law ministry. Market rates had recommended by TRAI for auctioning of Spectrum. He also favored who did not meet eligibility criteria. The companies Unitech, Swan Telecom who did not have any prior telecom experience got licences. Swan Telecom sold 45% stake to Etisalat for Rs.4200 crore, but it got the license for Rs.1537 crore. Nine companies were purchased the licence paid only Rs.10772 crore to DoT for 2G licence actually expected money was Rs.176,700 crore by the Comptroller and Auditor General of India.
Political competition in Spectrum Issue

The former Chief Minister of TamilNadu J.Jayalalitha accused Tamilnadu State Chief Minister M. Karunanidhi of protecting A. Raja even after the corruption charges against him and demanded for resignation of A.Raja and after lots of drama A.Raja resigned by mid November2010. A Show-cause notice issued to Unitech, S Tel, Loop Mobile, Datacom(videocon), and Etisalat to respond his declaration granted to these companies and the up front capital required during the time of application and the ways used are illegal. Expected to receive large fines but not have their licences cancelled and they are providing consumer service too. Mr.Kapil Sibal taken up the place of A.Raja in addition to Union Minsiter for Human Resources Development. Enquiry has been going on A.Raja by CBI. Lots of questions asked by the CBI about the last date changed and the investments made on his relatives name and documents recovered by CBI from his house, enquiry went for atleast 9 hours. Licences are not cancelled still date.

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