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CAG may audit telecom licences, spectrum allocation

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Press Trust of India New Delhi

The Comptroller and Auditor General (CAG) may audit the issuance of telecom licences and 2G spectrum allocation to some companies and also the proposed 3G acution norms.

According to sources, DoT has requested the CAG to access the files concerning grant of licence to several telcos through CBI, as currently these files are with the central investigating agency as part of its ongoing investigations into some alleged irregularities.

In a letter to the Post and Telecom Audit Office, an internal DoT note said, "the P&T Office may directly correspond with the CBI in the matter".

DoT officials are under scrutiny from CBI over issuance of licences to companies without any prior experience in the telecom sector. Another allegation against DoT is that second generation (2G) spectrum was allocated to these companies on a first-come-first-serve basis and at a throwaway price, rather than to the highest bidder.

 

Recently, the Central Bureau of Investigation had raided the DoT offices over the alleged irregularities in allocation of 2G spectrum.

Third generation (3G) auction is scheduled to start on January 14. The The empowered group of ministers had late August fixed the reserve price at Rs 3,500 crore. Four slots in each service area would be put on block and that the auction for 3G and WiMax would be completed in three months.

Meanwhile, the government is expected to take a decision on whether to auction 2G spectrum or not, based on the Trai recommendations, following the open house consultation.

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First Published: Dec 02 2009 | 9:26 PM IST

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