Loss to govt in 2G scam can’t be estimated: Trai

Ending the speculation on TRAI report on allocation of 2G spectrum during the tenure of former communications minister A. Raja, made key accused in the 2G scam case, the regulator has stated that it could not estimate the exact loss to the exchequer retrospectively in absence of business data of telecom companies.

“Retrospectively estimating annual value of spectrum in the 1800 MHz band for 8 years between 2001 and 2008 is a tricky exercise at the best of times. Access to data is crucially important, but equally, if not more important is access to business plans of the forecasts of the service providers who invest in the (telecom) market,” the report in its conclusions has stated.
TRAI has concluded it finding by saying that it did not have the access to the information about the telecom companies business plans and forecasts and even whatever data it had, “is inadequate as documented in its report.”
“We therefore, conduct the exercise of estimating market value of spectrum under severe data constraints and a changing technological environment,” the report said adding “the estimates of the value of the spectrum are on a broad range, the adaptive model providing a lower estimate and the production function an upper estimate.”
As per this formula, for a terminal year, “the range of estimates of the value is between around `5,500 crore to `9,500 crore and the range narrows for earlier periods,” the TRAI has stated in its report.
However, the CBI has struck to its investigation report putting the loss to the exchequer due to the sale of spectrum at over `30,000 crore.

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