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Policy & Regulation
Inefficient allocations, cartels responsible for 2G auction fiasco: CAG
TT Correspondent |  |  30 May 2013

Telecom players are learnt to have got flak from the Comptroller and Auditor General (CAG) for recent spectrum auction fiasco, according to reports. 
 
CAG in its communication to the Telecom Ministry is believed to have pointed finger at these telcos blaming them for forming a cartel while refusing to participate in the auction.
  
CAG also slammed the telecom department (DoT) for its inefficient allocation and inept management of 2G spectrum which resulted in huge loss of revenues.
 
CAG said that it is likely that operators are compromising with the quality of service standards set by Trai. There is also the possibility of inaccurate data in the quality of service reports submitted by the telecom operators, as well as their subscriber base data.
 
CAG had earlier put the loss due to irregularities in spectrum allocation to the operators in 2008 at Rs.1,76,000 crore.

In November 2012 the spectrum auction got tepid response and the government could garner Rs. 9,407 crore out of Rs. 28,000 crore expected. The auction was held following the cancellation of 122 licenses by the Supreme Court allocated in 2008 during the tenure of the former telecom minister A Raja. The process of auction was believed to be rigged.
 
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30 May 2013(IST)  
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