(2010-11)

Submitted To :

Submitted by :

MRS.ALKA SWAMI

TAMANNA SHARMA 2nd Sem. MBA

DEPARTMENT OF MANAGEMENT COLLEGE OF ENGINEERING & TECHNOLOGY KARNI INDUSTRIAL AREA, PUGAL ROAD, BIKANER

INTRODUCTION
The spectrum allocation scam, which relates to the

allotment of electromagnetic waves to mobile phone operators, has proved to be the albatross around the IT and Telecom Ministrys neck. The government has been jolted by controversy over licences and radio airwaves that a state auditor says were given out too cheaply, depriving the government of up to $39 billion in revenues.

SPECTRUM
Spectrum is a range of frequencies in which the desired signal will be transmitted. Radio spectrum refers to a range of radio frequencies. The bandwidth of a radio signal is the difference between the upper and lower frequencies of the signal.

SPECTRUM GENERATION
0G Mobile Radio Telephone 1G First Generation 2G Second Generation 3G Third Generation 4G Fourth generation

What is 2G ?
2G means second-generation wireless telephone technology. 2G cellular telecom networks were commercially launched on the GSM standard in Finland in 1991. 2G networks were fully digital while previous 1G network were analog. Three primary benefits of 2G networks over their predecessors were that phone conversations were digitally encrypted.

What is 2G ? cont.
2G systems were significantly more efficient on the spectrum allowing for far greater mobile phone penetration levels; and 2G introduced data services for mobile, starting with SMS text messages. G has been superseded by newer technologies, such as 2.5G, 2.75G, 3G, and 4G; however, 2G networks are still used in many parts of the world.

EVOLUTION of 2G
2G networks were built mainly for voice services and slow data transmission. Some protocols, such as EDGE for GSM and 1x-RTT for CDMA, are defined as "3G" services (because they are defined in IMT-2000 specification documents), but are considered by the general public to be 2.5G services (or 2.75G which sounds even more sophisticated) because they are several times slower than present-day 3G services.

What is 3G ?
3G refers to the collection of third generation mobile technologies that are designed to allow mobile operators to offer integrated data and voice services over mobile networks. 3G - or 3rd generation - technology supports the broadband, packet-based transmission of text, multimedia data - such as audio, video and digitized voice - at a high data rate.

APPLICATION of 3G

The bandwidth and location information available to 3G devices gives rise to applications not previously available to mobile phone users. Some of the applications are: Mobile TV Video on demand Video conferencing Tele-medicine Location-based services

Comparison Between 3G and 2G

2500 2000
Kbps

1500 1000 500 0 2G GPRS EDGE 3G

Why we need 4G ?
CURRENT
Voice communication
SMS, MMS Internet browsing Downloadable games Downloadable video No TV service Peer-to-peer messaging

4-G
VoIP, high quality video conferencing
Video messaging Super-fast internet Online gaming with mobility High quality audio & video streaming Broadcast TV on-demand Wide-scale distribution of video clips Mobile payment File transfer Many other innovative ideas

What is 2G Scam in India?

The 2G spectrum scam involved officials and ministers in the Government of India illegally undercharging mobile telephony companies for frequency allocation licenses, which they would use to create 2G subscriptions for cell phones.
According to a report submitted by the Comptroller

and Auditor General(CAG) based on money collected from 3G licenses, the loss to the exchequer was Indian Rupee 176,379 crore (US$38.27 billion).

2G SCAM
In 2008, the country issued 122 new telecom licences and the second-generation radio spectrum bundled with it to several domestic companies that had little or no experience in the telecom sector, and at a price set in 2001. Allocation process did not reflect the correct value of radio spectrum as there was no auction and the entire process was flawed, benefiting selected companies.

Politicians Involved

ManMohan Singh: Prime Minister of India from heading the ruling UPA government led by the Congress, who is accused of not acting on removing Raja, the main accused in the scam in spite of Finance minister (now home minister) Chidambaram's warning to him.

In a note to the PM on January 15, 2008, Chidambaram had reiterated the finance ministry's suggestion to auction spectrum as the price would be based on scarcity value.

Politicians Involved cont.

Kanimozhi : Member of parliament and daughter of DMK chief Karunanidhi in November 2010 . Kanimozhi filtered the information flowing to her father (the Chief Minister of Tamil Nadu) and thereby "tipped the scales in favour of" A. Raja.
In the 2nd charge sheet of CBI , Kanimozhi having

share in Kalaignar tv. Arun

Shourie and Pramod Mahajan

The previous minister of telecommunication are also

suspected

A. Raja (the main suspect)

The

Ex Minister of communication and Information technology- who was the minister when the controversial second round of spectrum allocations took place. This was due to the pressure exerted by the DMK, one of the main allies of the Congress. was arrested for his role in the spectrum scam and currently is lodged in the Tihar Jail in Outer Delhi.

He

Charges on A. Raja
Cheap No

Telecom Lincenses

Procedures Followed

Rules changed after the game had begun Cut-off date for applications advanced by a week

Licenses issued on a first-come-first-served basis

No proper auction process followed, no bids

invited Raja ignored advice of TRAI, Law Ministry, Finance Ministry

Corporates Involved

Unitech Group. Swam Telecom. Loop Mobile. Vediocon telecommunication. S tel. Reliance telecommunication. Vodafone essar. Tata communication.

Media persons and lobbyists involved

Neera Radiya: A former airline entrepreneur turned corporate lobbyist whose conversations with politicians and corporate entities were recorded by the government authorities and leaked creating the neera radiya tape contraversy. Barkha Datt: An NDTV journalist alleged to have lobbied for A. Raja's appointment as minister Veer Sanghvi: A Hidustan Times editor alleged to have edited articles to reduce blame in the Nira Radia tapes.

Impact on Stock Markets

The first casualty in Stock Markets once Raja was arrested was DB Realty. DB Realty had given 200+ crores to Kalaignar TV( owned by Karunanidhi's Wife) . The news led to 20% fall in the stock prices of DB Realty. Sun TV had its shares fall by 10% on the next day following rumours ofKalanidhi Maran having stake in Kalaignar TV. Sun TV COO refused the allegations. Swan Telecom Chief Balwa was arrested on Feb 8 and this led to rumours of links with Anil Ambani's Reliance ADAG and it led to 20% fall of his stocks

So, can we live a scam-free life in India for a while now ?