The government has been jolted by controversy over licences and radio airwaves that a state auditor says were given out too cheaply, depriving the government of up to $39 billion in revenues.
The telecom minister, A Raja, was forced to resign and Prime Minister Manmohan Singh has been asked to explain himself to the Supreme Court. Opposition parties want a full parliamentary probe and have blocked proceedings until the government relents.
So, what is the controversy all about and what does it mean for the telecom sector and companies?
What is 2G spectrum?
2G is short for second generation wireless telephone technology. Three main benefits of 2G over their predecessors are:
a: phone conservations are digitally encrypted; b: 2G systems are far more efficient on the spectrum allowing for greater mobile phone penetration levels; c: 2G introduces data services for mobiles.