The Central Bureau of Investigation (CBI) probing the 2G spectrum scam has set sights on the contentious dual technology policy and the way it was implemented by tainted former telecom minister A Raja in October 2007. CBI director AP Singh has already apprised the joint parliamentary committee (JPC) on 2G scam of the agency?s decision to probe this matter.
Dual technology policy allowed the government to allocate GSM spectrum to four CDMA operators; Reliance Communications (RCom), Tata Teleservices, Shyam and HFCL.
The policy was announced on October 19, 2007. Dual technology licences were also given at 2001 rates and the CAG report has pegged the losses to the government on this account at R37,154 crore.
CBI officials told FE that the probe would focus on two aspects which have emerged from an examination of the relevant files. The first one is with regard to rollout obligations by the dual technology licensees and the second pertains to the manner in which these companies pay their revenue share licence fees. On both counts, the Department of Telecommunications (DoT) under Raja deviated from the recommendations of the Telecom Regulatory Authority of India (Trai), without following laid-down norms.
Trai?s August 2007 recommendations, which formed the basis for giving out new 2G licences as well as dual technology ones, had clearly mentioned that dual technology licensees must meet rollout obligations separately for the two licences ? CDMA and GSM. It had also said that these licencees pay the revenue share licence fee on the basis of the combined adjusted gross revenue of both the streams. However, Raja had implemented the policy without incorporating the two clauses. Thus, the licensees did not have any rollout obligations on their GSM licences and paid separate revenue share licence fee, which worked out to be lower.
The government has the right to modify Trai recommendations on policy issues, by following specific guidelines. If DoT does not agree with Trai?s recommendations on any aspect, it must first refer the matter back to Trai with its views. The regulator then has 15 days time to respond, after which the government is free to decide its line of action. However, in the case of the dual technology policy, this process was not followed. ?This is where our investigations would begin in the dual technology case,? A CBI official said. Soon after the policy was adopted, the then Trai chairman Nripendra Misra dashed off letters to DoT stating that it was not proper to change its recommendations without referring them back to the regulator. The Justice Patil committee, which was constituted by telecom minister Kapil Sibal has also noted this impropriety. Interestingly, DoT is now taking a relook into the issue of separate rollout obligations for operators with CDMA and GSM licences. ?It is difficult to deny the existence of separate rollout obligations for second technology on the licence. This is further supported by the Trai, through letters subsequent to the acceptance of its recommendations where it has highlighted the need for roll out obligation for additional spectrum to the dual technology licensees,? an internal note of DoT has observed.