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HomeNewsTelecom NewsFaulty spectrum management causes Rs 560 crore loss to the exchequer: CAG
Wednesday, 09 January 2019 09:57

Faulty spectrum management causes Rs 560 crore loss to the exchequer: CAG

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According to the Comptroller and Auditor General (CAG), poor spectrum management by the telecom ministry has cost Rs 560 crore loss to the exchequer. It included an allocation to a telecom operator in 2015 on first-cum-first-service basis in contravention of the recommendations of a committee, even as 101 applications for microwave spectrum lay pending with the government. 

CAG released the report on 8 January and noted that the telecom department had formed a committee in late 2012 whose role was to look into spectrum allocation across all categories of spectrum users. The committee proposed that allotment of spectrum in the microwave (MW) band to all telecom operators should be done through an auction, which is a market-related process.

As per report: "However, in contravention of the committee's recommendations, allocation of MW access spectrum has been done on FCFS (first-cum-first-service) basis till date, as was being done for 2G licence and access spectrum till 2009.”

The report added: “It was also found that allotment of MWA (microwave access) to access service providers was withheld by DoT (department of telecommunications) since June 2010 and allotment against only one applicant was made in December 2015. There were 101 applications pending till November 2016 for allotment of MWA.”

Also, 7 years back, the Supreme Court had struck down the FCFS policy in the 2G spectrum allocation case of 2008-2009 and also cancelled 122 telecom permits in which spectrum was allotted via that process. The CAG, however, did not disclose the name of the operator.

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