Is 2G spectrum allocation is a Scam or an Error??

I know it’s very late to write about this issue. I like to analyze keenly in any issue before arriving to a conclusion. Now looking at the proceedings in the allocation of 2G spectrum to the companies and later on reports about the issue, I doubt whether it is a scam or an error. You can wonder that while majority of the people saying it as a scam how this idiot is saying it might be an error.

First of all let’s see the process undergone in allocation of spectrum. It is allocated by First Cum First Service basis; people say it is a old model which was followed by two of our telecom ministers in past. Due to this the companies are allocated spectrum for relatively cheaper prices when compared with the market. Then those companies sold their stake to overseas and domestic firms for higher prices. Here the experts say A. Raja has been convinced or corrupted by the companies for getting spectrum in low price. They also say Niira Radia might have did the lobbying work.

Reports by the government agencies like CVC, CAG and CBI say that raja declined the recommendations by PM, MOF, and MoL. From these facts they say it’s a scam, but by implying basic common sense you can say it’s not enough to prove it. Because none of the report carries an evidence against Raja for corruption, if you take for the Niira Radia tapes not a single tape deals with the spectrum allocation.

Now let’s take our focus to CAG report, which says due to this our government lost Rs.1,76,000 crores. They say it by calculating the stake price of those companies at present and also by allotted spectrum’s market price. Here too use your common sense is it possible to gain such an amount as our 3G auction too doesn’t valued that much.

Before going into it deeply I like to inform you that its not the first 2G spectrum allocation process, already some of the market players like Airtel, Vodafone had been allotted with these spectrum years ago.

Here arises a doubt for me, how the allocation should be for the new companies as they need to compete with the existing players?? If we think in this manner, the mentioned allocation process seems to be reasonable for me. Because the new players who enter into the market need to compete with the existing, so they should be allotted with some reasonable price. Only because of the low priced allocation we people enjoying the low tariffs from service providers and also the price war among the people helps us a lot. So the low price allocation can be considered as a like a subsidy given for petroleum products and several others. If giving subsidy is a scam our governments are doing that since our independence.

Before concluding this post I like to mention a scam by our medias and CAG. CAG is a government agency which investigated this allocation process and made a report based on the investigation. Before that report was submitted to our president media got access to it. Is it possible without corruption??

Overall, I am not convinced to accept it as a scam, as there is no evidence for it. Still I think it’s an error.

I need your valuable comments, because I might be completely in wrong perception.