2G scam: SC quashes 122 licences

Yusuf

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Someone has to do a PPP of the mobile tariffs in India.

I mean in spite of having low usage tariff, an aam aadmi like me still gets a monthly bill of 500. Based on my current usage pattern, I would get bill in the thousands if the cost was like before or in 3G.

Auctioning is only going to make the services expensive. Scarce resource or not, spectrum policy could be different that does not allows wastage. Where bandwidth is made available for cheaper price so that the services provided using the bandwidth is also cheap. With govt monitoring the "scarce" resource could be put to good use. I really don't understand this while funda of how a scarce resource auctioned leads to better utility than otherwise. We didn't notch up 900 million subscribers by people wasting "scarce" resources.
 

Ray

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I reckon the Govt has to frame a pricing policy that facilitates and not inhibits.

At the same time, ensure that there is no exploitation of the consumer!
 

Ray

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SC order on 2G scam could pave a way for policy clarity, says experts

Friday 3rd February 2012


The Supreme Court judgement on Thursday, cancelling 122 2G licences granted during the tenure of former telecom minister Andimuthu Raja, paves the way for clear policies in the fast-growing sector and is likely to reassure investors, experts said. They say the huge Indian market and robust economic growth would attract investors.

"I don't see any negative impact. Most investors would now be happy and reassured by the Supreme Court judgement. I think in one sweeping judgment the court has settled the policy issues, which will pave the way for a stable policy regime," said telecom expert Mahesh Uppal.

Government officials too said the move will in no way hit investments as investors realize that in a democracy the court is the apex authority. "It actually brings clarity and establishes the rule of law," said a top official.

SC order on 2G scam could pave a way for policy clarity, says experts | Indiaecho
 

Ray

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Order paves way for policy clarity, no major impact on investor sentiment: Experts

NEW DELHI: The Supreme Court judgement on Thursday, cancelling 122 2G licences granted during the tenure of former telecom minister Andimuthu Raja, paves the way for clear policies in the fast-growing sector and is likely to reassure investors, experts said. They say the huge Indian market and robust economic growth would attract investors.

"I don't see any negative impact. Most investors would now be happy and reassured by the Supreme Court judgement. I think in one sweeping judgment the court has settled the policy issues, which will pave the way for a stable policy regime," said telecom expert Mahesh Uppal. Government officials too said the move will in no way hit investments as investors realize that in a democracy the court is the apex authority. "It actually brings clarity and establishes the rule of law," said a top official.

Experts said the recent SC judgement that ruled in favour of Vodafone in the $11-billion tax case had helped boost investor sentiment.

The 2G spectrum scam and the arrest of top corporate executives, a minister and senior officials had cast a shadow on the sector that has posted scorching growth and has attracted global attention. Analysts say the judgement will now ensure that the policy for the sector provides a level-playing field for all investors.

But Norway's Telenor, which operates under the Uninor brand with its joint venture partner Unitech, said it was shocked to see that Uninor has been penalized for faults the court has found in the government process. "We have been unfairly treated as we simply followed the government process we were asked to," the company said in a statement.

Industry group said the judgment underlines the need for a pro-reform, competitive and market-based process for allocation of scarce national resources such as spectrum. The uncertainty currently prevailing in the sector will be eliminated, the Ficci said.

"In the new environment, India is expected to invite and attract large scale domestic and foreign investment afresh. This may take some time but is an improvement over an environment that mirrors uncertainty. Ficci expects the government to act with a great sense of urgency, while addressing the concerns of the investors and more so of the subscribers bringing a new equilibrium with new licences at the earliest and resolving the outstanding issues to the satisfaction of all the stakeholders," Ficci said in a statement.

"Consumer interest should be kept uppermost and Ficci hopes that it will be well ensured by the government," it added. Some experts said there may be some concern in the short term, but it is unlikely to have any major impact going forward.

"In the short term there maybe some concern but India is a large country where foreign players can invest in several sectors. In telecom, I would be curious to know, who are the new players who would want to come in now," said Jaideep Ghose, partner, KPMG.

The Indian economy is expected to expand by 7% in the current fiscal that analysts say is impressive against the gloomy global economic backdrop. The growing Indian middle class and robust demand is expected to attract attention of investors. Analysts said the judgement marked an end to the uncertainty that had plagued the telecom sector after the 2G scam was unearthed.

"We don't see any adverse impact on the investment climate. This judgement was not a surprise to the markets. It provides some clarity for future policy making," said N R Bhanumurthy, professor at the National Institute of Public Finance and Policy.

Order paves way for policy clarity, no major impact on investor sentiment: Experts - The Times of India
 

Ray

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So, who is right?

The experts?
 

Mad Indian

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2G scam: SC dismisses review petitions of telecom companies - The Times of India
NEW DELHI: The Supreme Court has dismissed the petitions of seven telecom companies seeking a review of its judgement by which the 122 licences for 2G spectrum in 22 circles were cancelled saying it did not suffer from any error apparent warranting its reconsideration.

"We have carefully perused the review petition and the record of the case and are convinced that the judgment of which review has been sought does not suffer from any error apparent warranting its reconsideration," the bench said while giving separate orders on the review petitions filed by telecom companies.

The companies, whose review petitions were dismissed, are Videocon Telecommunications Ltd, S Tel Ltd, Sistema Shyam Teleservices Ltd, Tata Teleservices Ltd, Unitech Wireless (Tamil Nadu) Pvt Ltd, Etisalat DB Telecom Pvt Ltd and Idea Cellular Ltd.

The apex court had in its February 2 verdict also imposed heavy costs of Rs five crore on Etisalat DB Telecom Pvt Ltd (Swan Telecom Ltd), Unitech Wireless Group and Tata Teleservices Ltd which were benefited by a "wholly arbitrary and unconstitutional" action of award of licenses to them and for off-loading their stakes for many thousand crores of rupees in the name of fresh infusion of equity or transfer of equity.

It had also ordered Loop Telecom Pvt Ltd, S-Tel, Allianz Infratech and Sistema Shyam Tele Services Ltd, which were also beneficiary of the decision, to pay a cost of Rs 50 lakhs each.

The apex court had said the allocation of 2G spectrum in 2008 during the tenure of A Raja as Telecom Minister was "wholly arbitrary, capricious and contrary to public interest apart from being violative of the doctrine of equality" to "favour some companies at the cost of the public exchequer".
:megusta::D
 

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