Feeds

Indian court grabs back 122 GSM licences from operators

Firms devalue to the tune of $25bn

Security for virtualized datacentres

India's Supreme Court has ruled that the 2G licences awarded in 2008 were not fairly distributed, and has snatched 122 of them back from the operators who were using them.

The court has decided the first-come-first-served approach adopted by then-telecoms minister Andimuthu Raja was "totally arbitrary and unconstitutional", and that the companies who gained from it should be fined. That process led to bands of spectrum being knocked out at discount prices to companies who were first, or were elevated to first, in the queue, raising considerably less money than an auction might have managed.

"This country is no longer willing to allow these corrupt corporations and these corrupt public officials to retain the benefits of their illegal and corrupt actions" says one of the petitioners quoted in The Straits Times.

Raja is currently awaiting trial for fraud, and the court has also decided that Palaniappan Chidambaram, who was India's finance minister at the time but is now minister of the Home Affairs department, should face trial to see if he was involved.

The seven operators concerned have all been hit with considerable fines, but have also seen their share prices tank as it became clear they were going to have to bid for their existing spectrum in an open auction. Some have been expressing outrage, and shock, though the case has been rumbling on for a while and the ruling can't have come as a complete surprise.

Even as the spectrum was awarded, back in 2008, politicians were accused of stitching up the public purse by failing to auction the bands. The scandal even has its own Wikipedia entry listing all the companies, politicians, and journalists who are accused of colluding to distribute the licences.

India's current telecoms minister, Kapil Sibal, is trying to play down the effect on the cellular market, pointing out that only around 5 per cent of India's 900 million mobile subscribers will be hit, and that uncertainty over the 2G licences has been preventing investment in the country.

The uncertainty has now gone, with auctions to be arranged as quickly as possible – hopefully before the current licence-holders ask for their money back. ®

Protecting against web application threats using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Turnbull: NBN won't turn your town into Silicon Valley
'People have been brainwashed to believe that their world will be changed forever if they get FTTP'
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.