I have always been fascinated by the French word déjà vu and have an irrepressible urge to use it at least once in my writing. I got this chance while I was trawling through the web for spectrum-related news in the light of the Indian news media highlighting the unconfirmed reports on the JPC findings on the 2G Scam. In the UK, the people in charge of allocating spectrum are also being accused of selling family silver, helping the private sector make a quick buck — the only difference is that they are at the receiving end after conducting an auction using sophisticated algorithms called “combinatorial clock”.

Auctioning airwaves

The National Audit Office of the UK — a similar body like our CAG — is conducting an investigation on the shortfall against estimated revenues in auctioning airwaves or spectrum for 4G services recently. The accusations are that the auctions — a method for allocating spectrum, favoured whole-heartedly in our country by the CAG, SC, Opposition parties, media and, half heartedly, by the Prime Minister and the then Finance Minister — has been a flop show, much like our own 2G auctions in the last six months.

Reports from the UK say that “The National Audit Office is to investigate the low amount raised by auction of the 4G airwaves, which in June generated £2.3 billion (Rs 18,900 crore) — a total of £1.2 billion (Rs 9,840 crore) less than the Treasury had forecast, and £3 billion (Rs 24,600 crore) less than the theoretical maximum.” The National Accounting Office has decided to conduct a “value for money” audit for the project. The regulator Ofcom, equivalent of our TRAI (Telecom Regulatory Authority of India) is being accused of over-engineering the entire process to favour some of the bidders.

Bill Hayes, Secretary of the Communication Workers Union of the UK, in a letter to The Guardian has welcomed the investigation while observing that the recent 4G auction, fell “spectacularly behind its predicted revenue target”.

Astounded by the colossal short-change, he urged, on behalf of the Union, that the government should ensure value for money for the taxpayer. He charged the government with allowing private companies to get their hands on state assets for a bargain price, leaving public finances out of pocket. “Public finances need to be carefully managed, now more than ever. We sincerely hope the government… doesn't hastily sell off more family silver in the pursuit of a quick buck” he added.

‘Maximise’ revenues

Ofcom, which conducted the loss-making auction, also welcomed the investigation as it felt that the public would have an opportunity to know how efficiently it carried out its task. Defending the auction, it maintained that the outcome would “support competition, with five different companies able to launch 4G services and ensure enhanced coverage through an obligation to provide services to almost all of the UK population by 2017 at the latest”. Ofcom also cited the decision in 2003 of the previous Labour Government which, under a primary legislation, mandated that the policy conceived requires Ofcom to maximise benefits to the public by securing the efficient use of the spectrum. It emphasised that it was not necessary to “maximise auction receipts”. “The approach we took will ensure that the long-term benefits to the UK will far outweigh revenue raised from the auction”.

Haven’t we heard of all this in the last three years? The UPA Government says that its policy was in fact to continue with what the previous NDA government did; revenue maximisation was not the main aim of allocating spectrum but establishing country-wide connectivity and making mobile service affordable to the poor.

Well, allotting spectrum appears to be a mug's game.

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