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Wednesday 23 November 2011

NDA 40 Mhz for 10m Lines, UPA 122Mhz for 600m Lines – Exclusive

NDA 40 Mhz for 10m Lines, UPA 122Mhz for 600m Lines – Exclusive 
Considering there were just 6m mobile lines in 2002 allocating 40Mhz additional spectrum was deliberate scam as in next five years mobile lines growth was just 10m but since 2007 the growth in less than five years is 600m and spectrum allocated was only 122Mhz. 
So for every Mhz spectrum allocated by NDA 0.25m lines were added but in UPA rein every Mhz spectrum added 5m lines. 
In above chart on March2002 there were 6.68m lines that increased to 165m in 2007. Present Mobile lines numbers exceed 765m. So approx 10m lines were added after NDA allocated 40MHz new spectrum but growth after UPA allocated 122MHz was 600m lines. 
Hence UPA spectrum use per Mhz was 20 times more than NDA But Monthly billing dropped 90%. 
But significant development was monthly billing that was Rs. 811 in 2002 and Rs.298 in 2007 is currently Rs.0.88 or so – drop of almost 90%. 
Ravinder Singh
November23, 2011
2G scam: UPA gave out additional spectrum three times as much as NDA
NEW DELHI: The CBI raid and FIRs filed last Saturday, including those against Bharti Airtel and Vodafone, for excess spectrum given during the NDA regime under former telecom minister Pramod Mahajan is expected to create a standoff between the BJP and the UPA over the 2G scam in Parliament when the session begins on Tuesday. 

However, fresh complexities arise from the fact that Parliament data now reveals that UPA allocated far more excess spectrum than NDA. 

Making serious charges under the Prevention of Corruption Act, the CBI FIR alleges that allocation of excess spectrum beyond the contracted amount of 6.2MHz allowed under the licence agreement caused a loss of Rs 508 crore to the exchequer. 

The issue of excess spectrum, however, is complex and plays out in perpetuity from 2002 until now. 

The government has already informed the Parliament that a total of 162.6MHz of excess spectrum has been allocated by various governments, between July 17, 2002 and January 21, 2009. Of this, 24.6% or 40MHz was allocated to seven operators during the NDA regime between July 2002 and May 2004. 

However, three times as much - 75.4% or 122.6MHz of excess spectrum - was allocated by the UPA government across seven operators between June 2004 and January 2009 (see chart). 

Mahajan, the allocation during whose tenure the FIR relates to, allocated the least amount of excess spectrum - 15.4MHz or 9.4% of the total. 

Arun Shourie allocated 24.6MHz of excess spectrum or 15.1%. Dayanidhi Maran allocated the maximum amount of excess spectrum at 103.4MHz or 63.6% between June 2004 and May 2007. Finally, A Raja gave away 19.2MHz of excess spectrum or 11.8% of the total spectrum given. 

Since the CBI has indicated loss between 2001 and 2007 across several operators and not just on account of excess spectrum allocated to Bharti and Vodafone, it remains to be seen whether the excess spectrum-related investigation will reach the doorsteps of other officials and ministers apart from Mahajan and former DoT secretary Shyamal Ghosh. 

The largest private sector beneficiaries of excess spectrum are Bharti with 35.4MHz, followed by Vodafone with 21.6MHz, and Idea with 12.6MHz. BSNL, with 67.4MHz, is the single largest beneficiary of excess spectrum beyond contracted amount. In sharp contrast to the CBI's Rs 508 crore loss calculation, the CAG's loss estimate on account of excess spectrum ranges from Rs 12,003 crore (based on Etisalat's acquisition of Swan) to Rs 36,993 crore (at 3G spectrum rates). Trai, in its October 2011 recommendations, reaffirmed the value of this spectrum at close to Rs 10,000 crore, enhancing the financial ramifications for the accused. 

Tata Tele and new entrants implicated in the 2G scam are in the clear as far as this excess spectrum-related FIR is concerned since they only have access to 4.4MHz, which is within the contracted amount.

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