2. What is 2G
2G Spectrum Case 2
Second generation
wireless telephone
technology
Relatively new
technology in the
field of mobile.
Benefits are:-
-SMS facility was
first started with
network
-Revolutionary
technology at that
time
-Good
environment
condition
3. Introduction of the 2G Case
• Case involved government officials illegally undercharging mobile companies
for frequency allocation
• A. Raja allocated 122 license of 2G spectrum with fixed price option which
favored some telecom companies
• Sold the license with a low price without any rules and regulation
• Reduced the deadline of application due which many companies did not
apply
• Companies which favored A raja were ready with their cheques and other
documents
• CAG gave report licenses were granted to ineligible companies with no
experience
• The total loss was estimated around 1.76 lakh cr.
2G Spectrum Case 3
4. MAJOR ISSUES
Rules and
Regulations were not
followed
Issued license at on
first come first serve
basis
Given a prior notice
of cut off date of
applications
No auction process
followed, no bids
were invited
Ignored the advice of
TRAI, Law Ministry,
Finance Ministry
4
2G Spectrum Case
5. ROLE OF
A RAJA
• Cheap Telecom License- at 2001 price
instead of 2008
• No Procedure Followed
• Rules Changed and Date Changed
• First Come,Fiest Serve Basis
• No Proper Auction ,No Bid Invited
• Favouritism
• Ignored TRAI,Finance Ministriy and Law
Ministry Advice.
5
2G Spectrum Case
6. PARTIES ACCUSED OF
INVOLVEMENT
Politicians Involved
• A Raja – Minister of Communication& IT
• MK Kanimozhi- Rajya Sabha MP
• P. Chimdambaram- Minister of Home Affairs
Bureaucrat's Involved
• Siddharth Behura- Former Telecom Secretary
• RK Chandolia- Raja’s private Secretary
6
2G Spectrum Case
7. PARTIES ACCUSED OF
INVOLVEMENT
Corporates Executives
• Gautam Doshi- MD of Reliance (anil ambani group)
• Surendra Pipara- VP of Anil Amani Group
• Sanjay Chandra- MD of unitech
• Sahid balwa and Vinod Goenka- DB Group and Swan telecom
promoters
Media Professionals
• Nira Radia
• Barkha Dutt
• Vir Sanghvi
7
2G Spectrum Case
8. LIST OF COMPANIES
FAVOURED
• Allianz Infra
• Swan
• Videocon Telecommunivation
• Reliance Communication
• S Tel
• Unitech builders &estates
• Loop Telecom
• Vodafone Essar
• Tata Communiation
• MTS 8
2G Spectrum Case
9. ETHICAL
ISSUES
AND
CONCERN
GOVERNMENT
• The ethos of collective responsibility is not being
preserved
• Incorrect use of power causes havoc. The whole
decision-making power was vested in a small group of
bureaucrats.
INDUSTRY
• Fair competition spirit not complied with.
• Intermediaries used for authority access.
• Pure company profit chasing – Uninor and Swan
• The primary driving force was profit
REGULATION
• Only advisory powers No power were given to take
strict action.
• Conflict of interest is mitigated in the appointment
process.
• Government agencies should be held more
accountable to regulators.
2G Spectrum Case 9
10. IMPACT OF 2G SCAM ON COUNTRY
2G Spectrum Case 10
Impact on
Impact on Stock
Market
Impact on
Impact on
Government
Impact on
Impact on
customers
Impact on
Impact on
Investors
Impact on
Impact on New
Oprators
11. RECOMMENDATION
• There should be proper disclosures in all PPP and any kind contract
which involve public money.
• Government can sanction to pre-qualified candidates on lottery basis
• Loophole in the System need to be corrected in order to avoid scams
• Whenever A scam rises govt. Is dealing with scam rather than the reason
behind it.
• Parliamentary committees should be more transparent to general public.
• Media should be more transparent and present the actual fact to public.
2G Spectrum Case 11
