The sheer success of 3G spectrum auctions has reinforced the magnitude of the 2G scam, considered to be the biggest scam in independent India, resulting in a notional loss of several crores of rupees to the exchequer.

Year 2010 seems to be marred by a vicious circle of scams, includ- ing Satyam scam, IPL scam, Commonwealth Games scam, Adarsh Housing scam, just to name a few. Nonetheless, the mother of all scams, second generation (2G) spectrum scam, has been unearthed very recently. Considered to be the biggest scam in modern India, it accounts for a colossal loss of Rs 1.76 lakh cr to the public exchequer, exposing the vulnerability of the prevailing laws of the nation. Indeed, the controversy dates back to 2008 when scarce airwaves and licenses for 2G mobile telecom networks were allegedly sold to nine telecom companies at throwaway prices of Rs 1,658 cr (less than $350 mn) for a pan-India operation. Importantly, the scam was discovered after the sale of 3G Spectrum, which earned a whopping $15 bn to the exchequer, while the broadband auction fetched over $8.5 bn. The scam became more obvious when the Comptroller and Auditor General (CAG) report was tabled in the Parliament.

The Indian telecom sector, one of the fastest growing telecom sectors across the world, has been hit by the epidemic of corruption of late. Undeniably, the sector has witnessed a rapid transformation in the past two decades. Since the National Telecom Policy 1994 set the stage for the opening up of the sector, the number of cellular phone services has outnumbered fixed line services, and India soon became one of the world's fastest-growing markets for mobile phone services. The most vital change was brought in by the National Telecom Policy of 1999 with the shift to a revenue-sharing regime where the operators had to share their revenues with the government in the form of annual license fees and spectrum charges. The Unified Access Services License (UASL) 2003 framed the road map for a uniform licensing regime. Nonetheless, despite the fact that the sector was witnessing manifold growth, the issuance of licenses in 2008 was done by DoT at prices determined in 2001, i.e., that of a nascent market. This underlined the lacunae in the implementation of the policies laid down by the Council of Ministers.

The Analyst Magazine, Spectrum Sale, 2G Scam, 3G Spectrum, Commonwealth Games Scam, IPL Scam, Telecom Companies, Telecom Sectors, Unified Access Services License, National Telecom Policy, Cellular Phone Services, CDMA Technology Platforms, Regulatory Policy.