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He is the only bread seller in the entire city, and everybody who wants to make sandwiches has to buy bread from him. That sounds like a fine job. This bread is used around the city to make sandwiches. Now, consumers love sandwiches. They are ready to pay a lot of money to buy sandwiches. This must be a good news for Raja, right? Because he is sitting on the entire supply of bread in the town, and many people want to buy that bread.
If you were Raja, what would you do? Goddamn it! Sell it at a high price! Conduct an auction! Whoever pays the most gets the bread. It makes sense, right? Because you want to make money from it.
Now, where is the fun in that! Raja is clearly disappointed with this. And then he got a brilliant idea. He called his friend, and this happened:. Raja: I am selling bread, and whoever comes first will get all the bread. And the price of that bread is nominal.
Do you want it? I am not telling you to wake up and come before others and wait for the window to open. I am going to tell you in advance when the window will open. Sounds doable, right? Friend: Okay, even if we assume that we can do this, what in the world will I do with bread! I am not a sandwich maker, why do I need bread? Obviously via highway.
Spectrum is that highway. Private Player Businessman cannot afford it. Thus the highway spectrum , is created. Then Government will charge money to whoever cellphone company uses this highway spectrum. Just like you pay for using Bandra-Worli sea-link or Yamuna Expressway.
Get loan from SBI. Pay the money to Government. Or even better, bribe minister so they give free spectrum. Check the application of driver: does he have previous experience of running telecom business? After verifying his record, Sell the access to this highway Spectrum. Method 1: First come First Serve basis You already know how cinema tickets are sold. The person who is first in the line, gets the ticket.
This also leads to ticket black-marketeering, for example, I come early, buy all the tickets. You come late, all the tickets are sold, I offer my tickets to you higher price and make huge profit. But according to a theory propounded by Mr. Because Cinema hall did receive money for ticket sale. Method 2: Auctioning method As the name suggest, Auction the tickets.
If person A offers Rs. Here is the problem: if Person B was a doctor, and he had to shell out Rs. Then he may charge more fees from patients his clinic to keep the profit margin same. And whoever gets the license, he will automatically get spectrum for free. So no need to pay separate money for accessing highway spectrum. Swan Telecom Shahid Balwa A new company, it had no experience of running telecom business. Yet it applied for license and got it. Shahid Balwa was arrested in , released on bail, thus proving that he is totally awesome.
Recall: bought the ticket, did not watch the movie and sold the ticket to third party higher price. Raja Telecom Ministry A. Epic Your are buddy! Way to go buddy! Many thanks sir…. This explanation gives a clear picture of what is 2G Spectrum Scam. Nice One.
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