CBI asks Trai to value 2G allotted during 2001-2008

Decision taken in view of the fluctuating estimates of losses.

The Central Bureau of Investigation (CBI) has sought the Telecom Regulatory Authority of India’s (Trai’s) help to ascertain the loss to the government from allocation of spectrum to all operators during 2001-2008.

Highly placed sources in the agency said the decision to approach Trai was taken in view of the fluctuating estimates of losses to the exchequer on account of the sale of spectrum in 2008.

“We have requested Trai to set up an expert team which will go into the entire gamut of spectrum pricing and give us an estimated loss which could be proved in a court of law,” a senior official of the agency said.

Confirming CBI’s communication, sources in Trai said it had forwarded the request to a team of experts and a report was expected soon. “As soon as we get the report from experts, the same will be forwarded to CBI,” sources said.

This comes within days of Trai recommending a pan-India licence fee of Rs 10,972.45 crore for 6.2 Mhz of start-up spectrum with effect from April 1, as against the Rs 1,658 crore being paid by operators till now.

Trai had also recommended that each Mhz of additional spectrum held by operators be priced at a one-time fee of Rs 4,571.87 crore (all-India), though it would vary from circle-to-circle and the operators would only have to pay for zones where they held extra spectrum.

CBI had earlier said the government may have lost over Rs 22,000 crore due to irregularities in the allocation of spectrum by former Telecom Minister A Raja, who was arrested earlier this month on charges of favouring some private firms.

Later, the investigating agency estimated the loss at around Rs 50,000 crore, as estimated by the Enforcement Directorate.

An expert panel of Trai has valued the price of 2G spectrum, beyond the 6.2 Mhz start-up spectrum given to operators, to be 136 per cent higher than the auction bid for 3G spectrum on a pan-India basis. On the other hand, the value of 2G spectrum within the limit of 6.2 Mhz was 53 per cent of the 3G price.

However, CBI was unable to discern the price of 2G spectrum allocated to telecom players during 2001-2008, when most older players like Bharti, Vodafone and Idea were allocated spectrum.