2G scam fallout: Sibal announces new licensing framework

New Delhi: Under heavy fire over the 2G spectrum scam, the government today announced sweeping changes in the spectrum allocation policy.

Telecom Minister Kapil Sibal declared that a new licensing framework will soon be in place. Some of the major policy changes highlighted by the Telecom Minister are:

• Spectrum should be delinked from licences
• Licence fee should be uniform
• Licences should be renewed every ten years unlike the present twenty
• Application for renewal of licences should come 30 months in advance
• Service rollout obligation norms will be modified
  
• Spectrum-sharing to be considered, permitted in certain conditions
• There will be a regular audit and review of the usage of spectrum
  
• A drafting committee for a possible National Spectrum Act would be formed under retired Supreme Court judge Justice Shivraj V Patil.

The Minister though said that the government was yet to decide on the pricing mechanism for the awarding of spectrum to potential players.

The new licensing regime comes after a massive political furore over the 2G spectrum scam that eventually saw the arrest of former Telecom Minister A Raja for allegedly masterminding the entire scam.

Raja is accused of illicitly selling valuable spectrum at under-valued prices in 2008, a deal which cost Rs 1.76 lakh crore to the national exchequer according to the government's auditor. Mr Raja allowed frequency and mobile network licenses to companies who were not eligible for them; he allegedly got massive kickbacks in return. He has been charged with conspiracy, forgery, cheating and misusing his public office.