Government’s Mistake, Innocents pay!!

My mom was confused with all the hobla going around 2G case, she didn’t understand the head or tail of it.We have a uninor connection, that’s mainly because all my sisters (3 of them) have taken up connection from Uninor during 2011. Uninor offered the best plan within the circle with 120,000 secs of talktime for Rs.38 (Less than $1)/month. Major news channels started to broadcast that the licenses of Uninor, MTS, etc would be quashed and would be out of services within months. Mom was worried about her mobile bill if she had to change to other service providers, a minimum of Rs.500 (About $10) was to be kept aside

Mom: Prasad, what’s this 2G case, why is uninor going out of business.

Me: Supreme Court has found out that these companies have received 2G service licenses in illegal way.

Mom: (She was confused) Still I don’t understand, was the government unaware of such deeds before.

Me: Let me explain it to you (I took up a KG of sugar, which I had just bought from the stores). How much does this sugar cost you?

Mom: Rs. 32 from Super market, Rs.34 from local shops.

Me: Good, Think this sugar as 2G license. Store keeper as Govt. of India. Me as Unitech & Yourself as Telenor. Me and you form a separate company Uninor to have clarity in business. Ok

Mom: Ok, got it.

Me: Excellent, GOI decides to sell 2G license to Telecom companies and ask them with proposals and would distribute it to them on first come first serve basis.

Mom: Hmm.., so Uninor goes and buys it.

Me: Yes, here is the catch. GOI decides to sell it at Rs. 5 (when market value is at Rs. 32).

Mom: Its so cheap.

Me: Yes, I buy 1kg of Sugar for Rs.5 and sell you only 600gm for Rs. 20. So I made a huge profit here, didn’t I?

(Unitech did the same they got the license for Rs: 1600 crore and sold 60% stake to telenor for Rs. 6200 crores, that too within

Mom: (Wondering and trying to calculate the exact amount). so what’s wrong in that, the store keeper (GOI) is a fool to sell it at throw away prices, didn’t he know the market price or what.

Me: Everyone knew the market value, but they acted as if they didn’t know and acted in devious ways to ensure licenses were sold to few selected bunch and others miss out on this.

Mom: How did they do it?

Me: They changed the final date of submission of interest, Earlier it was supposed to be 1st October 2008, but they changed it to 27th September 2008, due to which some major companies lost out.

Mom: Who changed it? Govt. / Persons in Govt. right! (I nodded in agreement). Court has advised that the Licenses to be quashed, why didn’t it give punishment to all involved parties. Why should I suffer for the Govt’s. mistakes, why didn’t SC fine A.Raja, as it did fine the corporates, who were equally tormented by irresponsible Govt. Official.

Me: I am not sure about what’s SC’s ruling. (Now was the time for me to escape the questions from my Mom. At the same time my mobile rang, I excused myself and left the common room towards the room)

My mom’s questions were right, but I was not the right person to answer them, as a matter of fact our laws are so complicated even God would find it difficult make out a proper understanding of them.

Whatever might be the case at last the consumers of Uninor, MTS, etc are the real looser as we have to pay up extra money for number portability and higher cost of connectivity.

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1 Comment

  1. Many consumers will pay, not just those of Uninor & MTS. The reduction in spectrum will make it an expensive commodity. This might further lead to a spurt in cell phone bills for most users.

    Let’s see how things pan out.

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