2g Spectrum Money Scam

2g Spectrum Money Scam

2G Spectrum is the second-generation wireless telephone technology. This telecom network was launched on the GSM standard in 1991. It has three primary benefits:
• Phone conversations were digitally encrypted.
• More efficient on the spectrum allowing for far greater mobile phone penetration levels.
• Introduced data services for mobile, starting with SMS text messages.

2g Spectrum Scam

    The happening of the issue was on 2008 in which the nine telecom companies provided scarce airwaves and licenses for the 2G mobile phone service at Rs.1,658 crore for a pan-India operation, about 122 circle-wise licenses were issued. The 2G spectrum financial scandal in the Telecommunications A.Raja is considered as one of the largest political corruption case in the history of modern India.
    The CBI predicted that the scam was mainly due to loss from underpricing the Government of India. The telecom bandwidth was being undervalued and the licenses were offered on the basis of 'First-Come-First-Served'. Several other political parties claimed that the scam's value is much higher. Out of the 122 new licenses that were given out, 85 licenses were won by companies that did not meet the eligibility criteria. Some companies who did not have any telecom infrastructure also got 2G licenses.
    The final blow came after the Comptroller and Auditor General of India said the entire process of spectrum allocation was undertaken with the sale of 2G spectrum at 2001 rates in 2008, that resulted in the loss of up to Rs.1.70 lakh crores in an arbitary manner and the advise of the industry watchdog was ignored and misused.
    This financial scam eventually led to Raja's resignation on 14th of November, 2010 with the further criminal investigation and action on A. Raja with reports being filed by the Controller and Auditor General (CAG) and the Central Bureau of Investigation (CBI). For the companies who have already been allotted licenses in the 2G scam such as Swan telecom, Unitech and Tata teleservices, no decision has yet been taken by the government.