Thursday, 2 February 2012

SC Verdict on 2G Scam

Justices GS Singhvi and AK Ganguly delivered the verdict on the 2G Scam today. The above graphic highlights the 3 major points of the verdict. TRAI is yet to study the full implications of the verdict. If a service provider has to renew their license and go for bidding again, then mobile phone call costs may get higher.

The request from Prashant Bushan to have a Special Investigation Team (SIT) review and supervise the CBI investigation of the scam has been denied.

The decision on whether, the Home Minister, Mr. P Chidambaram will be investigated will be taken up at the trial court of Justic O P Saini.

This scam, amounting to around INR 1,800 Cr is considered to be the costliest scam ever in the history of India.

Smaller players, possibly 5% of spectrum subscribers are those who would be affected according to a preliminary comment by TRAI, who are yet to study the verdict in full.

Reliance communications has assured that all their licenses were taken prior to 2001 and therefore subscribers need not be worried. This statement has come as subscribers have been worried about RCOM services after it just posted accrued loss of over Rs. 30,000 Crore.

It is notable that 3G Licenses have not been entirely under investigation. TRAI too is an independent body that will have to issue directions based on the verdict to any operators who have been affected by this cancellation of Licenses.

For now, there are no immediate worries to subscribers and consumers about termination of any mobile communication services.