MY Blog: 2G Spectrum Scam : Government projecting to be focussed on development has led India Down !!! Its collective responsibility

Spectrum is allocated by government to operators to carry voice and data traffic from mobile handset to operator network.
Spectrum allocation and utilization are prime important concern for any government worldwide as this is always limited .

In Indian context this is more important we have more population to cover and spectrum needs to be treated as national resource and requires long term proper policy in place.
It has been seen that where ever mobile penetration has increased economic development has increased ten time.

What has happened in last 2-3 years is :
1. Spectrum allocation policy is not clear in a country where maximum subscribers are added. TRAI and government has only one role that is regulate interest of citizens and nation by drafting policies which has long term perspective and regulate same. Is government still puppet of few business houses?
2. There is no tag on operators per circle , you need more operator to make pricing competitive. In India prices offered is lowest in the world. Was there any need to have more than 4 operators per circle?

This has created ambiguity in shining telecom industry which was offering best prices with 4 operators per circle .
When spectrum was allocated:
1. Top circles were already having high penetration
2. Rural and low end was focussed by existing operators

By allocating spectrum to new operators, government has :
1. Allowed entry of operators with no business viability
2. Most of them are doing bear min roll out and are looking for offloading equity at premium price.
3. Scarcity of spectrum created valuation of license and spectrum

End result of above decision have been:
1 Existing operators are hanging on to market . Drop in share prices of these operators are reflection of impact of policies of government.
2. 3G prices have been so high as existing operators required spectrum . By not allocating spectrum and licenses to new operators . existing operators would have paid for it and this could have been win win for both operator and government.
3. With 3 prices so high, government objective of cost effective wireless broadband and expansion into rural areas will have big jolt.
4. No single operator could take PAN India 3 G license and BWA was taken by one operator .

Impact on Nation
1. Mobile broadband penetration will have biggest impact .
2. Telecom business may bleed for some time and have indirect imapct on associated manpower

Who is responsibe
1. Its collective responsibilty of government as Telecom is backbone of country economi growth
2. By making single person resign , shows lack of accountability and reviews
The same have been issue with Common Wealth , its time for PMO to sit and examine how such big tickets deals are done with PMO sleeping.