The Spectrum Tussle - Cdma V Gsm

[raccoon 53]

Although it's certainly going to raise the tariff,but I feel it's the only way to teach the fools who are crying on the notional loss (1.76 Lakh Crore) to exchequer.

It's pain in the heart but happy in the brain.

Can't understand this logic - you really want millions of telecom consumers to suffer higher tariffs just to "teach the fools who are crying on the notional loss"? Btw, notional loss aside, there has definitely been a lot of foul play regarding the telecom scandal. Aren't you forgetting the other other issues that constitute the scam?

I would strongly oppose any move that increases tariffs. Sibal's contention that competition will keep a check on tariffs seems like utter nonsense. If costs go up, tariffs will increase, this way or that.

Further what about tariff plans that are already in place? Esp. post paid plans... and evne some pre-paid ones that come with lifetime tariff validity? If costs increase significantly and telcos cannot increase tariffs, it will bleed them. Telcos have to make a reasonable profit, if they are to provide for costs, network expansion and good service.

Edited February 9, 2011 by raccoon

[Honest 836]

Bharti says TRAI's 2G proposals unfair

The Economic Times l 9 Feb l New Delhi

Bharti Airtel, India's top mobile carrier, said on Wednesday second-generation mobile spectrum pricing proposals by India's telecom regulator fails to provide a level playing ground between older and newer operators.

The Telecom Regulatory Authority of India's (TRAI) has recommended to the government steep increase in prices of 2G spectrum that would also see companies holding more than 6.2 mega hertz spectrum paying a one-time fee for that.

"The recommendations by TRAI goes against the stated principle of the government to offer affordability, fairness and level playing field," Bharti Airtel said in a statement.

Bharti said it was confident that the government would come out with a spectrum pricing policy that is fair and non-discriminatory.

[Honest 836]

Vodafone Essar slams TRAI 2G pricing proposals

The Economic Times l 9 Feb l New Delhi

Vodafone Essar, India's third-largest mobile carrier and controlled by Vodafone said in a statement on Wednesday second-generation mobile spectrum pricing proposals by India's telecom regulator were "flawed, illogical" and "discriminatory" against older operators.

Vodafone Essar estimated its potential one-time payout would be 17.43 billion rupees ($382 million) and that bigger rival Bharti Airtel will have to pay 40 billion rupees. Reliance Communications' payout would be 700 million rupees, the statement added.

[Honest 836]

Unitech, Swan caused Rs 7105-crore loss in spectrum scam: CBI

The Economic Times l 9 Feb l Mumbai

Swan Telecom and Unitech Telecom companies had together caused a loss of over Rs 7,000 crore to government exchequer as both had offloaded their shares for hefty sums after getting the 2G spectrum, alleges CBI.

With the arrest of Shahid Usman Balwa, promoter of Swan, the focus of CBI is now on officials of Unitech who had been instrumental in getting the Unified Access Licenses (UAS) during September 2007 and January 2008.

In a five-page FIR, CBI charged the officials of the Department of Telecom and some private companies entered into a criminal conspiracy and caused wrongful gains to themseleves.

It said M/s Unitech was alloted UAS licenses for 22 cricles for Rs 1658 crore. "It offloaded its 60 per cent of shares in the licenses to Telenor of Norway for Rs 6100 crores even before the roll-out," the FIR said.

Similarly, Swan was alloted UAS licenses for 13 circles for Rs 1537 crore and it sold 45 per cent of shares before roll-out to UAE-based Etislat for Rs 4200 crore.

"The estimated loss to the governemnt by grant of licences to these two companies alone comes to Rs 7,105 crore. On pro-rata basis, the estimated loss for all the 122 circles is more than Rs 22,000 crore," the FIR said.

It said the licenses were issued at a very nominal rate based on prices fixed in the year 2001.

"As per the information received, all this was done in criminal conspiracy between DoT offcials and private companies in order to award licenses to the company for a heavy consideration by putting a cap on the number of applicants against recommendation of TRAI and by awarding licenses to private companies on first-come-first-serve basis on the rates of 2001 without competitive bidding," the FIR said.

[kesav 127]

Although it's certainly going to raise the tariff,but I feel it's the only way to teach the fools who are crying on the notional loss (1.76 Lakh Crore) to exchequer.

It's pain in the heart but happy in the brain.

Can't understand this logic - you really want millions of telecom consumers to suffer higher tariffs just to "teach the fools who are crying on the notional loss"? Btw, notional loss aside, there has definitely been a lot of foul play regarding the telecom scandal. Aren't you forgetting the other other issues that constitute the scam?

I would strongly oppose any move that increases tariffs. Sibal's contention that competition will keep a check on tariffs seems like utter nonsense. If costs go up, tariffs will increase, this way or that.

Further what about tariff plans that are already in place? Esp. post paid plans... and evne some pre-paid ones that come with lifetime tariff validity? If costs increase significantly and telcos cannot increase tariffs, it will bleed them. Telcos have to make a reasonable profit, if they are to provide for costs, network expansion and good service.

I completely agree with each and every point.

I said that in frustration.

Due to foolish trumpeting of 'loss to exchequer' theory by paid media, we've now reached a point of no return as far as tariff increase is concerned.

I never ever accept increase of tariff when our rural tele-density is just 30%.

There were procedural irregularities (in your terms 'foul play') which must be focus of the investigations and not this crappy theory of 'loss to exchequer'.

[kesav 127]

One important thing which everyone should understand.

This pricing will not affect the new operators till they reach subscriber level of 6.2 MHz.

In that sense there's no issue for competition.

[KanagaDeepan 1,084]

Bharti says TRAI's 2G proposals unfair

The Economic Times l 9 Feb l New Delhi

Bharti Airtel, India's top mobile carrier, said on Wednesday second-generation mobile spectrum pricing proposals by India's telecom regulator fails to provide a level playing ground between older and newer operators.

The Telecom Regulatory Authority of India's (TRAI) has recommended to the government steep increase in prices of 2G spectrum that would also see companies holding more than 6.2 mega hertz spectrum paying a one-time fee for that.

"The recommendations by TRAI goes against the stated principle of the government to offer affordability, fairness and level playing field," Bharti Airtel said in a statement.

Bharti said it was confident that the government would come out with a spectrum pricing policy that is fair and non-discriminatory.

Vodafone Essar slams TRAI 2G pricing proposals

The Economic Times l 9 Feb l New Delhi

Vodafone Essar, India's third-largest mobile carrier and controlled by Vodafone said in a statement on Wednesday second-generation mobile spectrum pricing proposals by India's telecom regulator were "flawed, illogical" and "discriminatory" against older operators.

Vodafone Essar estimated its potential one-time payout would be 17.43 billion rupees ($382 million) and that bigger rival Bharti Airtel will have to pay 40 billion rupees. Reliance Communications' payout would be 700 million rupees, the statement added.

WOW.... AirHELL has to pay 40-BILLION INR, V0da has to give 17.5-BILLION INR and CARTEL HAS TO PAY THIS AGAIN WHEN LICENSE RENEWAL WHICH IS DUE IN COUPLE OF YEARS ... And ALSO NEW operators NEED NOT PAY ANYTHING till they reach 6.2MHz level... I am LOVING IT... Further this will reduce number of fake activations by all old and new operators...

But whatever the Cartel may blame or shedding crocodile tears, they WILL PAY WHATEVER TRAI CHARGES and WILL NEVER LET THEIR 900MHz SPECTRUM TO GO AWAY from them, may be except in circles where they have got 3G spectrum...

OHHH... The cost of 2G spectrum is highest in our TN :'( ??? Seems, I have to finalize quickly the deal with the retention team...

Edited February 10, 2011 by KanagaDeepan

[kesav 127]

But whatever the Cartel may blame or shedding crocodile tears, they WILL PAY WHATEVER TRAI CHARGES and WILL NEVER LET THEIR 900MHz SPECTRUM TO GO AWAY from them, may be except in circles where they have got 3G spectrum...

Dear Kanaga, There's no choice for paying spectrum charges as for as 900 MHz is concerned. TRAI has not done any calculation for the price of 900 MHz spectrum since they want it to be surrendered ASAP.

It's also the most critical step needed to be executed immediately to bring level playing field in our telecom industry.

Pay or vacate option is only for the excess spectrum beyond 6.2 MHz in 1800 MHz

Edited February 10, 2011 by kesav

[sgiitk 32]

At the moment the government almost bankrupt they will try every trick in their hand to jack up revenues. All the printing of money to reduce the impact of the recessing is now coming home to roost.

The argument will be something like 'With the cheapest mobile telephony in the world, surely users can afford to pay a bit more'.

[prafull4u 24]

The Government is Bankrupt but not Ministers, its high time that UPA should take Loans from Kalmadi and Raja , Kapil sibbal is one of the worst Educated Cabinet minister i've ever seen next only to Dr Manmohan i think, Instead of doing some constructive work he is punishing Aam Aadmi for the misdeed of his own government... I hope all the telecom companies should come together and oppose the Trai recommendations...

[kesav 127]

No chance for all telecom companies to come together when the current policy is so much in favor of old telecom operators.

Only 4-5 companies are going to be affected by these TRAI recommendations for next 2-3 years.

so most of the new operators will keep away from the protest and they further plead with Govt to move faster in this direction.

Blaming Govt for TRAI recommendations shows total ignorance on the subject.

Why TRAI recommended multi-fold increase in spectrum charges?

It's purely due to foolish propaganda carried on by senseless media.

If you want to determine the market price then there's no other choice.

Media never educated themselves on the revenue-welfare trade-off.

You cannot call "MGNREGA" as scam when it drains revenue for providing livelihood for under privileged.

You cannot call "subsidy to oil companies on diesel price" as scam when it is done to keep the transportation charges under control.

You cannot call "Govt fixed procurement prices of different grains" (which is well above the whole-sale market price) as scam when it is done save the lives of farmers.

Scam may existed in telecom ministry but certainly not on the policy of "first come first serve" or its price of the spectrum.

Time for everyone to learn the truth in a hard way.................

[Honest 836]

Go after corporates in 2G scam: SC to CBI

The Times of India l 10 Feb l New Delhi

Broadening the net, the Supreme Court asked the CBI to bring under its scanner corporate houses which were beneficiaries of the 2G spectrum scam without being influenced by their status be it millionaires or whether they are on the Forbes list.

Giving a free hand to the investigating agency and setting the contours of the probe, the Court asked the government to set up a special court exclusively to try the spectrum scam case.

A bench comprising Justices G S Singhvi and A K Ganguly asked the agency to lay its hand on the big corporate houses and the government officials who may have a role in the scam "as mere summoning them for examining them may not be sufficient".

"We have a large number of persons who think themselves to be law. Law must catch them. It should be done with greater expedition. Merely they are in the list of Forbes or they are millionaires does not make any difference," the Bench said after perusing the status reports filed by the probe agencies in which names of big corporates houses and their officers were mentioned.

Advocate Prashant Bhushan, appearing for an NGO, Centre for Public Interest Litigation, pointed out that the agencies have not questioned the heads of several companies including Swan technology, which was controlled by Anil Ambani's Reliance Group, when the spectrum was allocated.

At this, the Bench said "top authorities of the companies were not questioned. It is surprising that the managing directors were not summoned".

"Why CBI has not taken any action in this regard," the court asked.

The apex court said freedom of probe agencies should not be curtailed and they should go beyond the role of the four persons already arrested including the former telecom minister A Raja and tell the names of conspirators.

"This investigation has led to prima-facie conclusion about the culpability of four persons. What about the beneficiaries.

"They are part of a larger conspiracy. We want to know about them. You (CBI) take instructions and tell us what action you are planning to take," the bench said.

It questioned CBI's strategy of seeking short custodial remands of the accused and said it must have free hand to question anyone.

"There is something which is surprising. CBI must have a free hand to question anyone. Whether it's freedom is curtailed by seeking short remand....complexity is involved.

"It is a very complicated matter. We feel that investigating agency must be given free hand to seek longer remand. Otherwise the whole purpose of investigation is frustrated," the Bench said.

[Honest 836]

Bharti, Idea get advantage due to policy lapses: Patil panel

The Economic Times l 10 Feb l New Delhi

Arbitrary decisions taken by ministry officials may have helped telecom operators like Bharti airtel and Idea Cellular get spectrum, says the one-man committee report.

For instance, additional spectrum of 2 MHz + 2 MHz beyond 8 MHz + 8 MHz was allotted to Bharti airtel in 2003 (during the NDA regime) for Delhi service area though no criteria for allotment of the same was in existence.

"This decision was taken on the basis of note put up by the then concerned Engineer and approved by Wireless Advisor along with his deputies. This was arbitrary and selective besides being unfair to other intending applicants," the report said.

Aditya Birla group firm Idea Cellular also benefitted as it was provided with extra time to acquire eligibility.

Idea Cellular had made application in August 2005 for grant of licence for the Mumbai circle, while the LoI was issued in November 2006. "In the intervening period, time was extended to enable the applicant to acquire eligibility," it said.

However, there were also instances when these operators were not shown preference.

For example, for the Chennai service area, a decision was taken to divide the available spectrum of 1.4 MHz + 1.4 MHz between Bharti airtel and Aircel, irrespective of their priority breaching the 'First Come First Serve' (FCFS) criteria.

On the basis of a note put up by another official, Idea Cellular's application for licence for West Bengal and other service areas was returned with the remarks "could not be seen" by the office of the Minister.

The further processing of the file was also withheld on the ground that a proposal had been submitted to the Minister to process the applications only after receipt of recommendations from TRAI, it said.

In deviation from the prescribed procedures, start-up spectrum to Spice Communications/Idea Cellular was withheld on the ground that proposal of their merger was pending, it said.

[Honest 836]

TRAI recommendations on 2G arbitrary: Idea Cellular

The Economic Times l 10 Feb l New Delhi

Aditya Birla group company Idea Cellular on Thursday said the TRAI recommendations on 2G spectrum pricing were flawed and adopting them would be like "slaughtering the goose laying golden eggs of progress".

"We are dismayed by the continual flip-flops in policy formulation in the telecom sector. In the same breath, the principles of transparency and auction-based spectrum pricing are touted, whereas arbitrary and unreal administered numbers are sought to be portrayed as 'market based'," Idea said in a statement.

The Telecom Regulatory Authority of India (TRAI) has recommended fixing the price for 6.2 Mhz of pan-India start-up 2G spectrum at10,972.45 crore, more than six times the present cost of1,658 crore.

TRAI has also said every Mhz of additional spectrum (on an all-India basis) beyond the contracted limit of 6.2 Mhz would cost a massive4,571.87 crore.

Most of the telecom firm, including Bharti, Vodafone, Idea and state-owned companies like BSNL and MTNL , hold extra spectrum beyond 6.2 Mhz and the new norms would put a huge financial burden on these telcos.

"Even more curious is how total spectrum holdings are sought to be aggregated for some operators, but disaggregated for select others, never mind the loss to the exchequer or basic level playing field considerations," Idea said.

Other leading telcos like Bharti airtel and Vodafone have also criticised the recommendations calling them "flawed, illogical and discriminatory".

"Our sector has seen many absurdities already. The goose that laid the golden egg of progress, is being led to slaughter. We can only hope that reason will prevail and a market driven mechanism will be allowed," Idea added.

[KumaarShah 143]

Read the following links for more on this spectrum tussle: -

Pawar denies links with DB Realty's Shahid Balwa here

AIADMK chief Jayalalithaa's statement here

Jayalalithaa links 2G scam money to DMK-TV here

DMK channel Kalaignar says it has no link to 2G money trail here

2G spectrum scam: Rules were tweaked to help Tata Teleservices, says Justice Patil report here

[Honest 836]

Trai: 2G spectrum given away at '01 prices

The Economic Times l 11 Feb l New Delhi

Telecom regulator Trai's new findings are consistent with CAG's comment in its concluding chapter that there can be no denying that the allocation of 2G spectrum had caused a loss to the national exchequer, although the amount of loss could be debated.

This latest analysis shows that 2G spectrum upto 6.2 MHz is valued at 53% of the 3G auction price. Beyond 6.2 MHz, it is valued at 136% of 3G auction price. With Trai's fresh report, it is clear that extremely valuable 2G spectrum was allocated in 2008 at throwaway 2001 prices.

In arriving at these new figures the experts have taken into consideration traffic carrying capacities, equipment dimensioning, propagation characteristics, technical comparisons and economic valuation to calculate the value using two methodologies.

The first is a classical oriented approach while the second is anchored in data of revenues and costs of mobile industry. They have also dealt with detailed comments provided by mobile service providers.

[Honest 836]

Reliance Comm says 2G proposal favours rivals

The Economic Times l 11 Feb l New Delhi

Reliance Communications , India's second-ranked mobile carrier, said on Friday the telecoms regulator's 2G spectrum price proposals favoured its older rivals such as Bharti Airtel and Vodafone's India unit.

Reliance Communications, which is predominantly a CDMA operator and expanded its GSM services a few years ago, said in a statement the proposals by the Telecom Regulatory Authority of India (TRAI) would cause a "revenue loss" for the government and "large savings" to old GSM operators.

It estimated the government would have a revenue loss of 64.74 billion rupees ($1.4 billion) due to the new proposals.

The company said older GSM operators would now have to pay only for the balance licence period, which is less than five years for many players, as against the regulator's earlier recommendation for a minimum seven years.

The TRAI has recommended a steep increase in prices of 2G spectrum that would also see companies holding more than 6.2 mega hertz spectrum paying a one-time fee for that, a move that would hit older operators on the GSM platform.

Older GSM carriers such as Bharti, Vodafone and Idea Cellular have criticised the proposals that could see them pay hundreds of millions dollars in one-time fee.

Vodafone has said the proposals were "discriminatory" against older operators, while Bharti has called them unfair.

[Honest 836]

TRAI dismisses old GSM operators' concerns, says no loss

The Economic Times l 11 Feb l New Delhi

Telecom regulator TRAI today dismissed GSM operators' charges that its recommendation to revise 2G spectrum prices will hit them hard and said they (telcos) were looking at the issue from a narrow perspective.

"Telecom firms should not look at only payout charges. This is just one element of the recommendations. There are other elements which will result in huge savings for the operators," TRAI Chairman J S Sarma told reporters.

TRAI has recommended fixation of uniform licence fees at 6 per cent of Adjusted Gross Revenue (AGR) over a period of time, compared to 6-10 per cent now, depending upon the circles, he said, adding that, "We have also recommended rationalisation of annual spectrum charges."

Sarma's comments came after incumbent GSM operators like Bharti, Vodafone and Idea Cellular and new service providers like Tata Docomo and Reliance Communications attacked TRAI for coming out with "irrational and discriminatory" recommendations on spectrum prices.

In fact, both factions -- new and old GSM service providers -- accused TRAI of making recommendations that benefited the other.

The new operators termed TRAI's recommendation as a complete sell-out to old GSM players, saying the extra spectrum hoarded by old operators would be legalised at a fraction of the actual cost.

They said that the operators should be asked to return the extra airwaves or else there should be a recurring cost and not a one-time entry fee, as proposed by TRAI.

In contrast, Vodafone Essar said TRAI's new set of recommendations are flawed, illogical and discriminatory against the operators that were the first to invest deeply to build the sector.

Similarly, Bharti also said that, "The recommendations by TRAI goes against the stated principle of the government to offer affordability, fairness and a level playing field. There seem to be huge inconsistency in terms of the differences of prices in various circles, which defies logic."

TRAI said that taking all elements of its recommendations in totality, the operators would actually save money over the licence period.

Besides lowering licence fees and rationalisation of spectrum charges, TRAI is also in favour of lowering operators' contribution to the Universal Service Obligation (USO) fund, a levy which is used to subsidise operators to offer services in rural areas and villages.

TRAI's Sarma urged the operators to look at all elements of its recommendations collectively and not selectively, on the basis of spectrum prices alone.

[rajanmehta 4,056]

2G SCAM INVESTIGATION

To Build A Tower Business

An MP's letter exposes the Tata Realty-Unitech nexus

Saikat Datta. Outlook Magazine

As the CBI's investigations into the Rs 1.76-lakh 2G spectrum scam progresses, a Lok Sabha MP from Andhra Pradesh has sent off a letter to the prime minister (a copy of which is with Outlook) levelling serious charges against the Tatas and Unitech.

It is believed that Unitech served as a front for the Tata group when they were "desperate" for a GSM license and spectrum. Ramesh Rathod, the Telugu Desam Party MP from Adilabad, points out in the January 11, 2011, letter that the Tata group "funded the entire amount of Rs 1,700 crore paid by the Unitech group for acquiring" 2G spectrum. He also alleges that the "deal was brokered by Niira Radia" who had both the "Tata group and Unitech group as her clients". (The Radia tapes had given indications on this earlier—that she played a key role in some of the repayments from Unitech to Tata Realty.)

As proof of his allegations, Rathod has attached the annual report of Tata Realty and Infrastructure Ltd for the fiscal year 2007-08. He points out that it clearly records an MoU of Rs 1,700 crore with "a party". The "party" mentioned, Rathod says, was none other than the Unitech group for the "proposed acquisition of land-owning companies". Why did the annual report fail to mention who the "party" was and what were the exact nature of the land-owning companies they were planning to acquire? And most importantly, why did they infuse capital into Unitech just before the allocation of licences and 2G spectrum? Was it a mere coincidence?

Rathod also points out that the "back-to-back funding" from Tata Realty to Unitech went to the latter's eight subsidiaries that were seeking spectrum allocation. For instance, Unitech Wireless (Delhi) received an unsecured loan of Rs 163.59 crore, which was, in actual terms, money from the Tatas. Similarly, seven other entities also received a proportionate share of the Rs 1,700-crore loan from the Tatas.

This, Rathod alleges, "clearly shows that the motive of the Tata group was never to acquire the land/land-owning companies". The Tata group, he says, "in a clandestine manner, advanced a huge loan of Rs 1,700 crore to Unitech, flouting all rules, regulations and applicable laws". Rathod has now asked the PM to investigate the matter and to ensure that "immediate penal and corrective steps are taken".

[Honest 836]

2G spectrum: ADAG says it’s cooperating with CBI in probe

The Economic Times l 12 Feb l Mumbai

The Anil Dhirubhai Ambani Group (ADAG) said it is cooperating with the Central Bureau of Investigation (CBI) in the 2G spectrum scandal probe. Its officials have been questioned by the investigators, the statement said.

“As part of this process, the CBI has also examined a few officials of Reliance ADA Group, and we are fully co-operating with the authorities in this regard,” a Reliance ADA Group spokesperson said in a late night statement.

Earlier in the day, the group, in a separate statement, claimed to have identified stock brokers responsible for spreading “baseless sensational charges” about the group that triggered a sell-off in the shares of six of its companies on Wednesday.

ADAG sought “punitive interim orders” by Sebi against the identified entities for “blatant violation” of capital market regulations which resulted in group companies losing at least Rs 11,500 crore in value in the share market on Wednesday.

ADAG said the stock brokers involved in what it described as manipulative bear activity against its companies spread rumours by using mass emails, short message services and voice calls. The group did not disclose the identity of the brokers.

Shares have recovered in the past two sessions led by gains in infrastructure developer Reliance Infra. On Friday, shares of Reliance Infra ended at Rs 615.70 on the Bombay Stock Exchange , up 5.2% from its previous close, buoyed by news that the company would consider a share buyback on Monday.

There was also concern over the group’s corporate governance practices after The Institute of Chartered Accountants of India, a body regulating auditors, approached Reliance Infrastructure’s auditors seeking clarification on a recent Sebi consent order through which the group settled charges of securities laws violations.

[kesav 127]

This is at the top of everything what we've seen so far......

BJP too ignored warning: Shourie

Former telecom minister and BJP leader Arun Shourie claimed that he had told top party leaders like Sushma Swaraj and Arun Jaitley about the 2G scam, just as he had told the Prime Minister. But, he said, his colleagues completely ignored his information. He said they were not interested in cornering the government on the 2G scam issue due to ‘vested interests’ and that only AIADMK MPs were chasing the scam seriously.

Shourie made these claims on Karan Thapar’s television show on CNN-IBN channel.

He said, “I don’t want to talk about BJP’s internal meeting but it is certainly my assessment that they were not interested in following these things.” He added that he wouldn’t like to make it a BJP-versus-him slug match. “But it is evident. And many of these people have had these very chaps as their clients, both on Kapil Sibal’s side and other sides.” The BJP refused to comment on Shourie's remarks.

Shourie also said he told the PM that he had all the details of the front companies of sacked telecom minister A Raja and was promised a meeting with the PM’s principal secretary, but no call came. He said this was in August or September 2009.

He also claimed that he gave then CBI director papers and the name of the whistleblower bureaucrat, who was contacted by the agency.

The investigating officer, however, was moved out soon after. Shourie said the whistleblower, who had all the details of the scam, was now facing death threats.

source :: http://www.hindustantimes.com/rssfeed/NewDelhi/Shourie-says-BJP-too-ignoring-scam/Article1-661683.aspx

BJP former minister blaming BJP top leaders of having nexus with 2G beneficiaries....

:rofl_200:

Surely, we're not reaching close to the investigations in this game.

These irregularities have started well before the Shourie......

These were running probably from 2001 unhindered till they found a scapegoat in the name of Raja to dumb everything on him for others to escape..............

In nutshell, Raja was not as intelligent as his predecessors from 2001 in running revenue(for parties) earning ministry......

:jumpy: :jumpy:

I can guarantee Mahajan, Shourie, Maran & Raja, everyone was operated by one or the other telecom operator.

Edited February 12, 2011 by kesav

[kesav 127]

Old GSM operators caused loss of Rs. 1 lakh cr to govt: RComm

Anil Ambani group firm Reliance Communication today accused the old GSM operators for “unscrupulously” causing revenue loss of over Rs. 1 lakh crore to the government during 2001 to 2010.

The company alleged that old GSM operators cornered excess spectrum beyond 6.2 Mhz and caused the loss to the government through other fraudulent misrepresentations as well from time to time.

While it has not named any operators, old GSM operators include Bharti Airtel, Vodafone and Idea Cellular.

“The old 2G operators, by active and fraudulent misrepresentation and concealment of material facts from the government, have unscrupulously caused the National Exchequer staggering losses of over Rs. 1,00,000 crore, during the period 2001 to 2010,” RCom Chief Executive Officer (Wireless Business) Syed Safawi said in a statement, and demanded that the CBI must investigate into these irregularities by the old GSM operators.

He said that spectrum was hoarded illegally in excess of 6.2 MHz in active connivance with certain DoT officials and it has extensively been documented and commented upon in successive reports, which form part of the ongoing investigations by the CBI, under the monitoring of the Supreme Court.

The CAG’s report of 2010, Justice Shivraj Patil report of January 20011, TRAI reports of May 2010 and February 2011 and Telecom Minister Kapil Sibal’s recent public statements, have identified these anomalies in the recent past, he said.

TRAI had also pointed out that some operators were holding 2G spectrum in the “superior” 900 MHz band and has proposed that airwaves in this band should be priced at 1.5 times the cost of spectrum in 1,800 MHz band, for which the regulator has recommended six-fold jump in its prices last week.

The loss of revenue to the government by the old 2G operators, on account of excess spectrum alone, has been computed at figures of as high as a shocking over Rs. 55,000 crore.

Several of these old 2G operators had also secured the prized and most valuable original eight licences for 2G in Mumbai, Delhi, Kolkata and Chennai in 1994-95, on a nominated basis, without any auction and by nearly zero payment of licence fees, he said.

For instance 2G licences for a Delhi and Mumbai licence were less than Rs. 200 crore compared to the recent 3G auction of over Rs. 7,000 crore for a licence in these two cities.

He also pointed out that the old 2G metro operators, by “misrepresentation of facts, and in active connivance with certain DoT employees”, obtained an extension and doubling of their licence period from the stipulated 10 years to an unprecedented 20 years, with zero payment of additional licence fees.

“These old 2G operators immediately sold stakes in their companies to foreigners, and encashed thousands of crores of rupees as illegal profits, in identical manner as has been adversely commented upon in the CAG’s report of 2010, in relation to stake sales for 2G licenses issued in 2008,” Mr. Safawi said.

source :: http://www.thehindu.com/business/article1451775.ece

[kesav 127]

CBI to question Unitech MD on 2G scam

NEW DELHI: After the arrest of Shahid Balwa, managing director of real estate house DB group, another real estate house has come under the CBI scanner in connection with the 2G spectrum allocation scam, reports said.

The CBI on Monday summoned Unitech managing director Sanjay Chandra as authorities probe whether some companies received favourable treatment in the granting of licences from former telecom minister A Raja.

Unitech declined to comment and the CBI was not immediately available for comment. Unitech has a mobile telecoms joint venture in India with Norway's Telenor.

The charges against Unitech, according to the CBI's FIR, was that it offlaoded 60 per cent of its shares to Telenor, a Norway-based telecom company and earned a profit of 267 per cent even before the roll out.

"M/s Unitech was alloted UAS licences for 22 cricles for Rs 1658 crore. It offloaded its 60 per cent of shares in the licences to Telenor of Norway for Rs 6100 crore even before the roll-out," the FIR said.

Earlier, some of the officials of the Unitech have already been questioned by the CBI and the Enforcement Directorate. Unitech has in the past denied any wrongdoing.

According to the FIR, "the estimated loss to the governemnt by grant of licences to these two companies (Swan and Unitech) alone comes to Rs 7,105 crore. On pro-rata basis, the estimated loss for all the 122 circles is more than Rs 22,000 crore."

Former telecom minister Arun Shourie too will appear before the CBI next week in connection with the agency's probe into possible criminal aspects in the telecom policy since 2001.

The CBI approached Shourie last week asking him to appear before the agency in connection with the preliminary enquiry registered by the agency following a direction from the Supreme Court.

source :: http://timesofindia.indiatimes.com/india/CBI-to-question-Unitech-MD-on-2G-scam/articleshow/7494760.cms

[Karthik R 246]

Indian Teleco TTSL Attempts To Differentiate Itself On Dual Tech.

NEW DELHI, Feb 15, 2011 : India's Tata Teleservices yesterday said it is unfair and incorrect to compare the company with dual technology operators like Reliance Communications and others as they had applied and got the approval even before the policy came into effect.

TTSL's statement came in response to RCom's claim that it had to wait since February 2006 for more than 18 months to get the dual technology (GSM and CDMA) licence.

RCom had said yesterday that its application was "on identical terms and payment of identical fees as the three other companies -- Shri Ratan Tata group's Tata Teleservices, Himachal Futuristic Communications and Shyam Telecom - and there is nothing special or untoward in the same."

TTSL, however, said that it "was the only operator, amongst those named above, to apply for Dual-Technology Licence after the 19 October 2007 announcement by the DoT and it is hence unfair and incorrect to compare TTSL with the other applicants, who had applied before the policy was announced."

"It is indeed special and intriguing that RCom and two other operators applied and got DoT approval even before the policy was announced," it added.

TTSL said that while RCom was allotted spectrum in all the circles immediately in January 2008, TTSL got DoT approval after 83 days. "TTSL, even after three years, is still awaiting spectrum allocation in the crucial Delhi Circle and in 39 commercially crucial districts in 9 telecom circles," it said.

The grant of dual technology approval to RCom in October, 2007, has been upheld by the Delhi High Court by a judgement in August, 2008, and by the Telecom Tribunal, TDSAT, by an order in March, 2009.

The CAG had pointed out that the DoT favoured RCom in jumping the queue for grant of GSM spectrum ahead of others. Over the past several weeks, as part of investigations pursuant to the Supreme Court's orders, the CBI is reportedly examining a large number of telecom firms and their officials, from across the entire telecom industry in relation to various matters from 2001 to 2008.

TTSL also clarified that the company and the Tata Group were not family-owned or family-run concerns or owned by Ratan Tata. "Hence, to refer to them as 'Shri Ratan Tata group's Tata Teleservices Limited' is not appropriate," it added.

Source : Trading Markets

[KumaarShah 143]

2G spectrum scam: CBI questions Anil Ambani

here

Some more news : -

2G spectrum scam: Anil Ambani meets CBI officials here