With HRD minister Kapil Sibal assuming temporary charge of the IT and communications ministry, the decks have been cleared for investigative agencies to probe the Rs 1.76 lakh crore 2G spectrum scam. They should now take matters to their logical conclusion by nailing anyone who's found guilty, no matter how high. It is now clear that systems and procedures were blatantly manipulated to benefit a handful of companies, some of which had little or no experience in telecom. Precious spectrum was allotted at throwaway prices and companies that won licences offloaded shares for huge profits. That such a sunrise sector is susceptible to vicious corruption is a matter of serious concern. A thorough investigation of the reasons behind this susceptibility is imperative to safeguard the sector from dubious dealings.
At the heart of the problem is the scarcity of spectrum. Given rapid innovations in technology, the demand for telecom-based products such as mobile banking, mobile retail and education modules based on the mobile delivery model is slated to soar. All of this requires a significant amount of spectrum. One of the main reasons for the shortage is that the defence forces are sitting on a huge amount of it. Not only does this raise the cost of spectrum for telecom companies but also incentivises manipulations. In that sense, the 2G spectrum scam is not unlike the land scams that have been making the news. A proper audit of the actual amount of spectrum available is the need of the hour. Only then can policies be formulated to rationalise the use of spectrum for civilian and defence purposes.
Shady deals in the telecom sector can also be attributed to the way the telecom ministry has come to be viewed over the years. The portfolio has become a bargaining chip for those in power to entice allies. This is particularly true of the Congress-DMK arrangement at the Centre. Things cannot be allowed to continue along the same trajectory. Given that the health of the telecom sector impacts the health of the larger economy - a relationship that is set to grow stronger in the coming years - the portfolio needs to be entrusted to someone who is clean, managerially efficient and has a sound understanding of the telecom revolution. Sibal could be the right person, but he has too many portfolios to juggle which isn't sustainable over the long term.
At present, however, a thorough clean-up is the need of the hour. The CAG report on the scam has found serious problems with 85 of the 122 licences given. A beginning could be made by cancelling these licences and calling for fresh auctions. Probity is key for the future growth of the telecom sector.
