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What is 2g spectrum?

2G means wireless mobiles which was introduced in second generation and spectrum means high

bandwidth ( its the range of frequencies used for a particular telecommunications signal, radio

transmission or computer network) which was introduced by government. It is the term used in the

telecommunication sector. It is a spectrum that supports 2G technology and for thgis purpose highbandwidth is required.

Benefits:

There are three primary benefits of 2G network :

Phone conversations were digitally encrypted (it is written in some specific code so that certain people

can read it)

Data services for mobile was introduced.

This system were more efficient for allowing the greater mobile phone penetration.

2G SCAM:

In 2008 2G licenses issued to private telecome at throwaway prices .

Rs. 1.76 lakh corer of scam has cost the government.

When licenses was introduced rules and procedures were flouted.

Licenses issued on a first come first served basis.

No bids invited.

The process of auction was not properly adopted.

Raja ignored advice of TRAI (TELECOM REGULATORY OF INDIA), Law ministry, Finance ministry.

Mr. A Raja was arrested for uder valuing spectrum and sold it to companies that he favoured even

though they were largely ineligible for licenses to run mobile networks. Mr. raja in his defence

said that, by seling spectrum cheaply he make mobile connectivity afforable for majority of

people. A raja blamed mr. P Chitambaram that he is also equally responsible for the scam. Why

he has not acted when mr D subbaro challenged their decisions that spectrum prices are not fair.

He has favoured a raja regarding the spectrum prices.

The sc on 2-2.12 (today) cancelled all 122 telecom licences allotted under the 2G spectrum on

January 2008. SC ruled that 85 out of 122 licenses were outside the eligibility criteria for

allocation. They were granted in an arbitrary manner and unconstitutional manner. The licences,

which were allotted by A Raja, will be cancelled in four months from now and TRAI must go in

for a fresh issue of licenses during this period.

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The companies whose licenses were cancelled include spice (4 lincenses), uninor(22

licenses)loop telecom(21 licenses), idea(9 license), videocon(21 licenses), swam telecom(13

licenses) and tata(3 lincenses) among others.

My opinion regarding this case:

12 companies infrastructure would be at stake.

Threat of closure.

The share of Four companies is growing.

Rates may be higher.

Stiff competition.

Profit margin may squeeze.

Acquisition is opportunity for four companies

Spectrum is sold at market price.

Cost of barrowing will increase.

122 licenses have been cancelled bcoz there investment as block.