New Trai norms put 2G scam at 1.24L cr

NEW DELHI: Telecom regulator Trai’s new 2G spectrum pricing parameters issued on Wednesday confirm an enormous loss to the nation on account of the spectrum sale in 2008 at 2001 prices. It also flies in the face of the government’s efforts to undermine the CAG report.

A detailed analysis by four experts for Trai shows a loss of about Rs 1.24 lakh crore — which is about 30% short of the Rs 1.76 lakh crore loss estimated by the CAG on the basis of last year’s 3G auction prices. But it is double the three other loss estimates of the CAG — Rs 57,666 crore, Rs 67,364 crore and Rs 69,626 crore, which were based on subsequent stake sales by Swan and Unitech and S Tel’s offer to DoT to buy spectrum.

Calculations of the 2010 value of 2G spectrum in the 1800 MHz band effectively squashes the argument that CAG’s loss estimates were presumptive . All operators who benefited from former telecom minister A Raja’s decisions of January 2008 have been assigned spectrum in 1800 MHz band.

Telecom minister Kapil Sibal, who earlier said the loss from the 2G spectrum scam is actually zero, is already on record that Trai’s report is acceptable to him. Critics of the Rajaorchestrated 2G sale wonder if the government will continue to defend its zero-loss position and whether it will apply the new price structure to all spectrum or still give away startup spectrum at historical prices.