Letters: Two sides of 2G

In view of the yet-to-be-released CAG (Comptroller and Auditor General) report on the 2G spectrum licences, which were issued on a first-come-first-served basis at 2001 rates without adopting the auction route followed for 3G licences, and the CAG’s estimate of a notional loss of Rs 1.76 crore to the exchequer, there is a strident demand from all quarters seeking Telecom Minister A Raja’s resignation. But it must be recalled that this also resulted in a level playing field for the new telecom operators who would have been at a disadvantage vis-a-vis existing 2G operators had the auction method been followed. It also resulted in a sharp drop in mobile rates that, in fact, was started by the newcomers and benefited consumers, leading to a deeper penetration of mobile telephony in the country.

Hence the loss to the exchequer must be set off against the growth in the service tax paid by telecom consumers and the corporate and other taxes as well as the duties the government received not only from the telecom companies but the manufacturing and service sectors that support the telecom sector after the much-maligned 2G licences.

T T Krishnan, Mumbai

II

The huge telecom scam has now been confirmed by the Comptroller and Auditor General (CAG). The opposition has been seeking the dismissal of Telecom Minister A Raja for the alleged fraud. But that’s a small price the opposition has been demanding. What’s at stake is the colossal loss to the exchequer that cannot be made good by merely removing somebody (though quite important) from office. Unfortunately, the ruling party has been dilly-dallying on the issue of ousting Mr Raja from the ministry. This could be because the ruling party knows that the opposition may come up with other demands once the minister is sacked. This is a wrong way of rectifying. The opposition should change the ammunition instead of concentrating on a trivial remedy.

K V Rao, Bangalore