Scrap spectrum since 2003 if Rajas wrong,SC told

In pitched battle among operators,Etisalat submits that govt didnt auction 2G spectrum in the past.

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The telecom companies,under scrutiny for having benefited in the 2G spectrum scam,on Tuesday told the Supreme Court that allocation of the air waves since 2003 should be scrapped if the first-come-first serve policy adopted during the tenure of former Telecom Minister A Raja is held illegal.

In a clear reflection of the war among telecom players,senior advocate Harish Salve,appearing for Etisalat DB Telecom Pvt Ltd,submitted that the government never followed the policy of auction for 2G spectrum allocation and many companies benefitted by getting additional radio waves without any charge since 2003.

“If this (lack of auction) can be a ground for

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cancellation of allotment,then all such additional allocation to other telecom companies since 2003 should be scrapped,”

Salve contended before a bench comprising justices GS Singhvi and AK Ganguly that additional spectrum was given to established companies by the government without charging them since 2003. Salve said the Department of Telecom did not follow the TRAI recommendation of charging the companies for additional spectrum at that time.

“The CAG report says that it caused a loss of Rs 36,993 crore by neglecting TRAI (Telecom Regulatory Authority of India) recommendation which had asked the government to charge the comapny for granting additional spectrum,” he said.

“Either cancel all spectrum allocation which was done without auction and then put it on auction. There cannot be discrimination among the service providers,” Salve said adding the “decision-making process on the part of the government has been horrible,to say the least. This is a mess created by the government and it must come out with solution.”

Etisalat DB Telecom Ltd,earlier known as Swan Telecom,

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is a joint venture between Etisalat and Dynamix Balwas Group.

Etisalat DB and its subsidiary has the Unified Services Access

License in 15 circles.

Shahid Usman Balwa,promotor of Swan telecom,has been

arrested by CBI in connection with the 2G scam. The court was hearing the PILs filed by an NGO CPIL (Centre for Public INterest Litigation),and the Janata Party President Subramaniam Swamy seeking cancellation of licenses to companies which were granted during the tenure of former Telecom Minister A Raja.

They alleged the allocation made by the DoT when Raja was

the minister,was marred by “multiple illegalities,corruption

and favouritism”.

They further submitted even the telecom sector regulator

TRAI had recommended cancellation of 69 out of the 122

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licences as the licencees have failed to roll out their

services as stipulated by the condition on which they were

given the licences.

“The allotment of spectrum in 2008 at the price

prevailing in 2001 on first-come-first-serve policy followed

by the government was arbitrary,illegal and was meant to