Click to play videoNew Delhi: The Delhi High Court has issued a notice to the Union Government on a petition challenging the spectrum allocation process. The notice was issued on a petition that said the government had allocated additional spectrum to various operators without any policy or charge.
The government has been asked to explain by December 10 on what basis it allocated spectrum in response to a petition filed by Anil Kumar.
Kumar says in his petition that the spectrum is a valuable resource which should be auctioned. He was represented by noted lawyer Prashant Bhusan.
The controversy centers around the awarding of 2G telecom licences for a total of Rs 9,000 crore on January 10. It has been alleged that this amounted to severe underpricing, causing a loss of almost Rs 51,000 crore to the exchequer.
Recently, new licencees Swan and Unitech, which invested Rs 1,537 crore and Rs 1,651 crore respectively on spectrum, received enterprise valuations of 9,400 crore and Rs 11,620 crore.
They received these valuations even though they have no telecom infrastructure, cash flows or customers.
Meanwhile, Union Minister of Communications and Information Technology A Raja's has argued that the decision to allot licences on a first-come-first-served (FCFS) basis rather than holding auctions rested on the National Telecom Policy of 1999 .
But what exactly is a spectrum?
- Spectrum is a radio frequency which enables mobile communication.
- The Telecom Ministry awarded 2G licences for Rs 9000 crore in January, allegedly a severe underpricing.
- For 3G No auctions were done while allocations.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)
More on IBNLive Right Now
TOP NEWS
MOST SHARED
PHOTOGALLERY
