At the outset of this discussion, it is crucial to address a pertinent question: Is there a link between the allocation of satellite spectrum and the issuance of electoral bonds? To understand the necessity of this analysis, one must consider the context. Investigative journalists, driven by a commitment to transparency and accountability, have speculated on a possible quid pro quo underlying the government’s decision to eschew auctioning satellite spectrum and the allocation of electoral bonds by Bharti to the ruling party. While I do not assert the presence or absence of a quid pro quo, the motivation behind this note is to emphasize the risks associated with investigative journalism that lacks a robust understanding of the technical and policy dimensions. Such endeavours, albeit well-intentioned, can inadvertently distort the public discourse, drawing parallels from the aftermath of the 2G scam that continues to reverberate through the telecom industry, impairing its competitive landscape and stifling technological advancement, including unlocking its true potential. This note aims to dissect these complexities and elucidate the underlying issues with utmost clarity, thereby contributing to a more informed and nuanced conversation.
The Ripple Effects of the 2G Scam Narrative on Telecom Sector Competitiveness
Before delving into the complexities of satellite spectrum allocation, it is critical to understand the pervasive impact of the 2G scam narrative on the Indian telecom sector. The focus here is on the narrative’s repercussions rather than the scam itself. While it is acknowledged that the 2G spectrum was allocated at below-market prices, potentially due to corrupt motives (not yet proven in the courts), the purported fiscal loss of Rs 1.76 lakh Cr has been a subject of debate. My stance is that the proclaimed loss, widely amplified by the media, was an exaggerated figure that did not just misrepresent the fiscal impact but also prompted policy shifts with long-term detrimental effects on the industry. This context is essential to appreciate the nuances of the satellite spectrum debate.
