Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Scandal threatens to disrupt India's mobile phone market

Ravi Nessman
Friday 03 February 2012 01:00 GMT
Comments

Your support helps us to tell the story

This election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.

The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.

Help us keep bring these critical stories to light. Your support makes all the difference.

India's most senior court has ordered the government to cancel 122 licences granted to telecoms companies during an irregular sale of mobile phone spectrum.

The verdict will probably disrupt the country's massive mobile market and is a further embarrassment for the scandal-riddled government of Prime Minister Manmohan Singh.

The 2008 sale of second generation, or 2G, mobile phone licences at cut-rate prices in a bewildering "first-come, first-served" process netted the government only 124 billion rupees (£1.6bn). Government auditors said the sale might have cost the Treasury as much as £22bn in potential revenue. The court ruled that licences granted in that deal should be scrapped and a fresh auction should be held.

Analysts expect the auction to raise an estimated 1 trillion rupees. That might be less than the spectrum would have garnered at the time, because of the subsequent introduction of 3G technology here and the consolidation of the main market players.

AP

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in