2G Spectrum Charges of (1.80 Lakh Crore) was Overstated against Congress

[rmani84]

No one personally likes corruption and most of us are against it, although sometimes forced into it.

Congress was charged by CAG that the 2G Spectrum allocation was a 1.80 Lakh Crores under-priced and that that sum was misplaced by Congress.

I never rule out the corruption involved. But, i never believed it could be so high. And the 2G Spectrum re-allocation based on auction that has received bids under 10,000 Crores is a testimonial to that. Still, a lot of people may believe it to have been fixed.

But, that's not the case. Below are the facts. Lets see how much profits each telecom company makes,

Bharti Airtel - 6,000 Crores
Idea Cellular - 576 Crores
Reliance Comm - 156 Crores
Tata Comm - 171 Crores

MTNL and TataTeleservice are in losses.

All telecom companies put together, make less than 7,000 Crores in profits. Even if the 2G spectrum allocation is for 20 years, how can they afford to pay 1,80,000 Crores just for the 2G Bandwidth.

A company can afford to pay only what they earn in profits. Expecting 2G bandwidth allocation to receive 1.80 Lakh Crores was insane.

[pankajj]

It was a baseless charge and media just bounced over it since there was nothing else.

[rmani84]

It was a baseless charge and media just bounced over it since there was nothing else.

True. Unfortunately most of us tend to believe stuff we don't know about ....