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Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
While it has been about fourteen to fifteen years, 2G scam still remains fresh in the minds of Indian people and the policy makers. It is still one of the biggest public scam in the history of India. If were a teen just then, you might not know much about the 2G scam. The scam unfolded around 2010-11, and shook the entire country to its core. It happened due to just one overlooked thing – spectrum allocation method.
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The rise of the phone maket in India pushed the growth of mobile subscriber numbers as well. India had come a long way, and almost everyone carried a handset with them by 2008-09. This meant more telecom carriers could come into the market and offer services. Here’s where the entire thing happened.
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What was the 2G Scam?
The 2G scam is simple to understand. At the time, the government didn’t auction the spectrum, instead, it allocated it administratively to players on a first come first served basis. The rates/price of the spectrum was still the same as 2001, despite the growth of market, and potential revenues. Taking advantage of this, a key government official sold the 2G spectrum license at low prices to favour some companies. These companies then sold a part of their stake to foreign investors at higher prices. This scam resulted in loss to the government.
