The Comptroller and Auditor General of India (CAG) has said that the Department of Telecommunications (DoT) undervalued the 2G spectrum sold to new players in 2008, on the grounds that the allotment price was unrealistic.
In its latest report, CAG has said that the policy has failed to address the issue of price-discovery of spectrum. TRAI?s report dated August 2007 highlighted that the entry fee as it existed in 2001 was not a realistic price for obtaining a license in the changed situation, considering the dynamism and growth of telecom sector and it needs to be reassessed through a market mechanism.
