CAG to look into efficiency of 2G spectrum of new players

Sources said the statutory auditor would now look into the performance of the telecom companies, which were awarded spectrum in 2008.

The CAG report, 'Efficiency of spectrum utilisation', would be drafted after looking into the accounts of all the nine telcos which were issued licences in January 2008.The Department of Telecom (DoT) had adopted a first-come- first-serve policy to allot 2G spectrum in January 2008, at 2001 prices, wherein each operator had to pay Rs 1,658 crore for pan-India licence.

The companies which were alloted spectrum include Unitech Wireless Ltd (rebranded as Uninor), Loop Telecom, S Tel, Datacom Services (now known as Videocon Mobile) and DB Group-promoted Swan Telecom (now Etisalat DB Telecom).

The Department of Telecommunication (DoT) is facing allegations of distributing new telecom licences and spectrum at throw-away prices and causing huge losses to the exchequer.
DoT officials are already under the CBI scrutiny over allegation that the second generation (2G) spectrum was allocated to companies which did not have experience in telecom sector.
Recently the CAG has concluded the auditing of the allotment of 2G spectrum in 2008 by the DoT. The report is expected to be tabled in Parliament in the Winter Session