2G refers to second-generation wireless telephone technology launched in 1991 in Finland. In 2008, 122 new telecom licenses were issued in India to companies with little telecom experience at 2001 prices, resulting in a shortfall of 1.76 lakh crore rupees compared to current values. The former telecom minister A. Raja is charged with issuing licenses at throwaway prices, ignoring regulatory advice, and showing favoritism to certain companies.

2. 2G is short for second-generation wireless telephone technology. It was commercially launched on the GSM standard in Finland in 1991.

3. In 2008,the UPA, issued 122 new telecom licenses to several domestic companies with little or no experience in telecom sector, and at a price set in 2001. The shortfall between the money collected and the money which the law mandates to be collected is 1.76 lakh crore rupees.

5. Source:CAG report,Nov 2011&TRAI Report on 2G spectrum of Feb 2011 Category Loss as per CAG New 2G value (Rs.in Crore) Loss based on Trai’s new2G Value (Rs. In crore) 122 New licences 1,02,498 54,323.9 35 Dual Tech Licences 37,154 19,691.6 Spectrum Held in Excess of 6.2MHZ 36,993 50,310.5 Total Loss 1,76,645 1,24,326.0

8. Comptroller and auditor General of India Central Bureau of Investigation Central Vigilance Commission Directorate of Enforcement

14. WHAT IS SPECTRUM SCAM? 2G licenses issued to private telecom players at throwaway prices in 2008 CAG: Spectrum scam has cost the government Rs. 1.76 lakh core CAG: Rules and procedures flouted while issuing licenses

15. WHAT ARE THE CHARGES ON FORMER TELECOM MINISTER A RAJA ? 1. CHEAP TELECOM LICENSES Entry fee for spectrum licenses in 2008 pegged at 2001 prices Mobile subscriber base had shot up to 350 million in 2008 from 4 million in 2001

16. Reliance Communications Sistema Shyam Mobile (MTS) – Sistema Mobile Russia Tata Communications Vodafone Essar Dishnet Wireless Allianz In

17. 2. NO PROCEDURES FOLLOWED Rules changed after the game had begun Cut-off date for applications advanced by a week Licenses issued on a first-come-first-served basis No proper auction process followed, no bids invited Raja ignored advice of TRAI, Law Ministry, Finance Ministry TRAI had recommended auctioning of spectrum at market rates

18. FAVOURITISM, CORPORATES ENCASH PREMIUM Unitech, Swan Telecom got licenses without any prior telecom experience Swan Telecom given license even though it did not meet eligibility criteria Swan got license for Rs. 1537 crore, sold 45% stake to Etisalat for Rs. 4200 crore Unitech Wireless got license for Rs. 1661 crore, sold 60% stake for Rs. 6200 crore All nine companies paid DoT only Rs. 10,772 crore for 2G licenses

19. CULPRITS

20. WHISTLE BLOWERS