Indian Govt Lost 4,187 Crore By Not Auctioning EVDO Spectrum: CAG


Comptroller Auditor General (CAG) has pegged a loss of Rs 4,187 crores to the govt by not auctioning EVDO spectrum.

CDMA operators like Tata Tele, Reliance Communication and Sistema Shyam offer EVDO services through high speed dongles. EVDO services are the same as 3G or high speed data services, except that EVDO applies to CDMA technology, while 3G is the GSM equivalent.

CAG has questioned the government decision to allot EVDO spectrum to the CDMA operators without auction. In a letter to DoT, CAG has sought explanation from the government on its impudent decision of not auctioning spectrum in 800 MHz band. This resulted in non- realization of upfront charges and undue favour to CDMA licenses by allowing them to provide 3G EVDO services with the 2G spectrum in 800 mhz band without charges.

In 2011, Cellular Operators Association of India (COAI) had raised concerns that CDMA operators are offering high-speed Internet access without paying an auction fee, like in the case of 3G services. COAI had also alleged that it has caused a revenue loss of over 14,800 crore to the government.

COAI had said that allotment of EVDO spectrum to CDMA players Violates DoT spectrum guidelines of August, 2008. COAI had alleged that spectrum was to be auctioned in the 450 MHz and 800 MHz band for EVDO services and in the 1,900 MHz band when it becomes available.

COAI in a strong worded letter to DoT had said that “EVDO services could have been provided only after the payment of the amount discovered through 3G auction and subsequent allocation of 1.2 MHz. But the CDMA/dual technology spectrum operators are offering EVDO services without paying these charges.”

Earlier CAG has said that allotment of spectrum to telecom operators has resulted in loss of 1 lakh 76,000 crores. Now again CAG has asked DoT to explain its stance on allotment of this EVDO spectrum without auction.

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Source: PTI