2g 3g

1. 2G & 3G Scam
Prepared by- FENIL SHAH
HIRAL SHAH
Guided by-Ami ma’am
Submitted to
Department of Business Administration
M.K Bhavnagar University
Bhavnagar

2. What is 2G means?
● ‘2G’ means: “Second-Generation Wireless
Telephone Technology”
● 2G is relatively new technology in the field of mobile.
● 2G is not just a network but a good technology.
● 2G spectrum was the revolutionary technology in their time,
it comes with some more benefits.
1. SMS facility was first started with network.
2. Safe for the use, means security level was high.
3. Environmental conditions was very good for this network & no network
shortage was there.

3. History of 2G
• 2G spectrum technology was first launched in 1991
in Finland only with GSM mobile phones.
• But this is not the latest technology.
• As 2G was launched in 1991 so many other
technologies overcome it with such as,
2.5G,
2.75G technologies
• But the latest technology in present world is 3G.

4. What is 2G Spectrum scam?
•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.
•The 2G spectrum scam involved officials and ministers in
the Government of India illegally undercharging mobile
telephony companies for frequency allocation licenses,
which they would use to create 2G subscriptions for cell
phones.

5. Who is this Person?
One of the main person
behind the India’s Largest
Corporate Fraud.
A. Raja (Born May 10, 1963, Perambalur, Tamil Nadu, India) is an
Indian politician. Raja was first elected to the Lok Sabha in 1996
and first served as minister of state from 1999 to 2003. In 2007, he
became cabinet minister for communication and information
technology. On being re-elected in 2009 he was again appointed
cabinet minister for communication and information technology
until being tainted in the 2G spectrum scam and resigning in 2010.

6. • A Raja (Telecom minister)
• Nira Radia
• M.Karunanidhi
• Arun Jaitley
• Barkha dutt (Journalist)
• Arun Shourie
• Pramod Mahajan
Persons involved in 2G Spectrum Scam

7. Corporate personalities involved
Anil Ambani - Reliance Group (ADAG)
Shahid Balwa - DB Realty and DB Etisalat (Swan Telecom)
Vinod Goenka - Dynamix Group
Venugopal Dhoot - Videocon Group
Prashant Ruia - Essar Group

8. Spectrum scam CAG report:
• 2G licenses at throwaway prices
• Rules bent, no procedure followed. Cut-off date
advanced.
• No auction, no bids.first-come-first served.
• Swan telecom license: rs.1537 crore
sold 45% stake: rs.4200 crore
• Mobile subscriber base:
2001:4 million
2008:350 million

9. • Revenue loss: rs.1.76 lakh crore
• Licenses issued in 2008 ,pagged at 2001 prices
• Law ministry,finance ministry,TRAI advise ignored
• Unitech wireless license: rs.1661 crore
sold 60% stake: rs.6200 crore
• Government revenue:
2G: rs.10,772 crore
3G: rs.1 lakh crore

11. Unitech Group:
A real estate company entering the telecom industry with its 2G bid; sold
60% of its company stake at huge profit to Telenor after buying licensing
(Including land values properties for towers).
Swan Telecom:
It sold 45% of its company stake at huge profit to Emirates
Telecommunications Corporation (Etisalat) after buying licensing.
Videocon Telecommunications Limited
Reliance Communications
Sistema Shyam Mobile (MTS) – Sistema Mobile Russia
Tata Communications
Vodafone Essar
Loop Mobile
S Tel
Dishnet Wireless
Allianz Infra
Corporations involved

12. Who All Benefited from This Scam ?
2G spectrum was allocated beyond contracted quantity to 9
firms including Bharti, Vodafone, Idea, BSNL, Reliance, Aircel,"
the report said.Niira Radia is said to be involved. Read her
details.
Department of Telecommunications (DoT) circumvented the
rules to help Swan Telecom, which effectively acted as a front
for Reliance Telecommunications. The charges in the CAG
report are that Swan should not have been considered for a
license because Reliance Communications held 10.7% stake in
Swan - and according to the rules, a telecom operator cannot
own more than 10% stake in another telecom company
operating in the same service area. "Email ID of Swan Telecom
was shown as that of a Reliance ADA group official
Another big beneficiary of the 2G spectrum allocation was
Unitech Wireless, which had no experience in the
telecommunication sector.
After Unitech got the license for a throwaway price of Rs. 1,661
crore, it sold 60 per cent stake to Telenor Asia for a whopping
Rs. 6,200 crore

13. What is 3G spectrum scam?
• The licences and the spectrum allocation were then
allotted to nine operators at a price of Rs.1,650 crore per
operator, he said. This price was not taken on the basis of
the 2007 market value but on the basis of an auction held
in 2001. The value of the licence and spectrum in 2007
could not be the same as in 2001. The telecom market has
grown phenomenally during this period. The companies
"post allotment didn't operate the service". All they (the
private companies) owned was a shell company and a
guaranteed spectrum. They availed 74 percent Foreign
Direct Investment (FDI) policy of the government and found
buyers and joint venture partners from the international
market, according to the opposition party.

14. • The companies were overnight valued at over
$2 billion (over Rs.9,000 crore) and a large
chunk of the equity was sold by at least three
licenses to overseas partners at a price of
Rs.6,000-7,000 crore. Obviously the
government lost over Rs.60,000 crore for the
nine licences collectively along with the
spectrum.