The Comptroller and Auditor General of India, also known as CAG, has estimated that the Indian government has suffered a loss to the tune of a whopping Rs 4187 crore due to its decision of not auctioning the EVDO spectrum. The body has pulled up the Department of Telecommunications (DoT) over negligence in this matter.
For those unaware, EVDO spectrum is to CDMA networks what 3G is to GSM ones. This high-speed data service is less commonly used in India but it’s utilized by bigwigs like Tata Tele, Reliance Communication and even Sistema Shyam. Since there are multiple players, an auction is seen as the way to go, but that hasn’t been the case with this allocation.
Spectrum in the 800MHz band had been given away by the Indian government without any auction, which in a way counts as undue favor to CDMA licensees. In a letter it has shot off to the DoT, CAG has asked for an explanation from the government of India about this decision.
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The Cellular Operators Association of India (COAI) was the first to observe this divergence back in 2011, when it created an uproar over CDMA operators offering high-speed Internet without paying proper auction fees. Back then the COAI had estimated that the loss to the government due to this was more than Rs 14800 crore, but according to the CAG, it’s Rs 4187 crore.
CAG will now wait for an answer from DoT, before initiating further action on this crucial matter.