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CBI probes irregularities in spectrum distribution
New Delhi: The Central Bureau of Investigation Thursday conducted searches in the offices of the telecom ministry to probe the alleged "criminal conspiracy" between some officials and private companies in giving wireless radio spectrum to telecommunication firms, which may have caused a loss of thousands of crores to the public exchequer.
"It has been alleged that there had been serious irregularities in the award of Unified Excess Services Licences to private companies," a CBI spokesperson said.
The CBI conducted searches in the Wireless Planning Cell and in the office of the Deputy Director-General (Access Services) at the Sanchar Bhavan after it registered a case against unknown Department of Telecommunication (DoT) officials, private persons and companies under the Prevention of Corruption Act.
"As per information received, there was a criminal conspiracy between certain officials of DoT and private persons/companies and others to award licences to these companies," the spokesperson said.
He said the officials had put a cap on the number of applicants against recommendations of Telecom Regulatory Authority of India (TRAI) and "awarded licences to private companies on first come first serve basis on the rates of 2001 without any competitive bidding".
The new licensees received start-up spectrum at 
1,651 crore for pan-India operations, at a price fixed in 2001 that was much below international prices, while questions were also raised regarding crossholding patterns in at least two new telecom operators.
This led to existing players and political parties crying foul over handing over the spectrum to new players and not auctioning it. While some Opposition members alleged a 60,000-crore loss to the government, experts estimates the figures to be between 20,000 crore and 25,000 crore.
Telecom firms in India offering second-generation (2G) mobile services get some spectrum to start with after they take a telecom licence. Subsequent allocation is done in slabs linked to the firm's subscriber numbers.
Searches were conducted by the CBI in the Wireless Planning Cell (WPC) and in the office of deputy director general (access services), Sanchar Bhawan, Ashoka Road in the capital.
Source: IANS
1,651 crore for pan-India operations, at a price fixed in 2001 that was much below international prices, while questions were also raised regarding crossholding patterns in at least two new telecom operators.
This led to existing players and political parties crying foul over handing over the spectrum to new players and not auctioning it. While some Opposition members alleged a 60,000-crore loss to the government, experts estimates the figures to be between 20,000 crore and 25,000 crore.
Telecom firms in India offering second-generation (2G) mobile services get some spectrum to start with after they take a telecom licence. Subsequent allocation is done in slabs linked to the firm's subscriber numbers.
Searches were conducted by the CBI in the Wireless Planning Cell (WPC) and in the office of deputy director general (access services), Sanchar Bhawan, Ashoka Road in the capital.
Source: IANS