Letter to the Prime Minister
November 14, 2007

Dear Manmohan Singhji,

This has regards to the release of Spectrum by Defence Ministry to DOT, and the planned sale of the Spectrum by DOT to Private Telecom Companies.

Although I have written to you earlier on this issue, I am reiterating through this letter again that all decisions relating to Spectrum allocation must pass the twin tests of public interest and transparency to the fullest.

Though there has been considerable rhetoric, noise and letter writing on this subject, I believe the issue can be narrowed down to two simple questions and I wish to bring them to your attention as the issues that your government and the Minister of Communications will have to explain and defend-

  1. What is the commercial value of this spectrum TODAY as estimated by the Government (that is being recovered from the Defence Ministry) and why is it that the Government and Ministry is levying charges for spectrum that were discovered through a tender process 6 years ago in 2001? Is it not commonsense that these prices are not relevant today when almost all asset classes have appreciated significantly in value and cost over the last 6 years?
  1. Why are license or Spectrum award process not following a tender route - a route adopted for all previous licenses and as well for FM license under this very government?

Unless the Government, Ministry of Communications and/or DOT have clear and defendable answers to these two questions, it would be easy for anyone to conclude that the process and terms being followed by the Government for the sale of spectrum are against the best interests of the country.

I have further researched this subject in detail in anticipation of a debate in Parliament and have detected many serious deviations in the working of the DOT vis-a-vis the Law and Policy. I will separately seek out answers for these as well.

I would urge you to seek answers for the two questions raised above urgently and I look forward to your response.

Yours truly,

Rajeev Chandrasekhar

Dr. Manmohan Singh
Hon'ble Prime Minister
Government of India
New Delhi