2G Technology: 2G (or 2-G) is short for second-generation wireless telephone technology.

After 2G was launched, the previous mobile telephone systems were retrospective ly dubbed 1G. While radio signals on 1G networks are analog, radio signals on 2G networks are digital. Both systems use digital signaling to connect the radio t owers (which listen to the handsets) to the rest of the telephone system. 2G has been superseded by newer technologies such as 2.5G, 2.75G, 3G, and 4G; ho wever, 2G networks are still used in many parts of the world. 2G technologies can be divided into TDMA-based and CDMA-based standards dependin g on the type of multiplexing used Benefits of 2-G Technology: Three primary benefits of 2G networks over their predecessors we re, 1) Phone conversations were digitally encrypted. 2) 2G systems were significantly more efficient on the spectrum allowing for fa r greater mobile phone penetration levels. and 3) 2G introduced data services for mobile, starting with SMS text messages. Capacity, advantages of 2G technology: Using digital signals between the handsets and the towers increases system capac ity in two key ways: Digital voice data can be compressed and multiplexed much more effectively than analog voice encodings through the use of various codecs, allowing more calls to be packed into the same amount of radio bandwidth. The digital systems were designed to emit less radio power from the handsets. Th is meant that cells had to be smaller, so more cells had to be placed in the sam e amount of space. This was made possible by cell towers and related equipment g etting less expensive. 2G networks were built mainly for voice services and slow data transmission

Disadvantages of 2G technology: In less populous areas, the weaker digital signal may not be sufficient to reach a cell tower. This tends to be a particular problem on 2G systems deployed on h igher frequencies, but is mostly not a problem on 2G systems deployed on lower f requencies. National regulations differ greatly among countries which dictate wh ere 2G can be deployed. Analog has a smooth decay curve, digital a jagged steppy one. This can be both a n advantage and a disadvantage. Under good conditions, digital will sound better . Under slightly worse conditions, analog will experience static, while digital has occasional dropouts. As conditions worsen, though, digital will start to com pletely fail, by dropping calls or being unintelligible, while analog slowly get s worse, generally holding a call longer and allowing at least a few words to ge t through. While digital calls tend to be free of static and background noise, the lossy co mpression used by the codecs takes a toll; the range of sound that they convey i s reduced. You will hear less of the tonality of someone's voice talking on a di gital cellphone, but you will hear it more clearly. 2G spectrum corruption: We have had a number of scams in India; but none bigger than the scam involving the process of allocating unified access service licenses. At the heart of this Rs.1.76-lakh crore worth of scam is the former Telecom minister A Raja who accor ding to the CAG, has evaded norms at every level as he carried out the dubious 2

G license awards in 2008 at a throw-away price which were pegged at 2001 prices. Background of 2G spectrum corruption: . The issue dates to 2008 when nine telecom companies were issued scarce airwave s and licences for second generation (2G) mobile phone services at Rs.1,658 cror e (less that $350 million) for a pan-India operation. As many as 122 circle-wise licences were issued. The opposition said that by giving the airwaves cheap, that too in the controve rsial manner of first-cum-first-served basis, the exchequer had lost billions of dollars. The cut-off date for applications was also arbitrarily advanced. Later, based on the auction of airwaves for third generation (3G) services, whi ch got nearly $15 billion to the exchequer, and that for broadband access, whic h fetched over $8.5 billion, the notional loss was estimated at $38 billion to t he exchequer. But Prime Minister Manmohan Singh himself defended Raja's decision and said May 24 that all that his communications minister had done was to implement a policy al ready in place and none of the norms were flouted.

The opposition further stepped up its attack with two examples on 2G auction: - A new player, Swan Telecom, bought licences for 13 circles with the necessary spectrum for $340 million but managed to sell a 45-percent stake in the compan y to UAE's Etisalat for $900 million. This swelled its valuation to $2 billion w ithout a single subscriber. - Another new player, Unitech, paid $365 million as licence fee but sold a 60-p ercent stake to Norway's Talenor for $1.36 billion, taking its valuation to nea rly $2 billion, again without a single subscriber. Similarly, another licensor, Datacom, later became Videocon Mobile and Stel now has large stake by Baharian Telecom. The other companies are Tata Tele, Idea C ellular, Loop Telecom, Shyam Telelink and Spice. As recently as last month, the Supreme Court asked the solicitor general why the prime minister had not responded to the representation by the opposition to sa nction proceedings against Raja. The final blow came after the Comptroller and Auditor General of India said the entire process of spectrum allocation was undertaken in an arbitrary manner an d that the advise of the industry watchdog was ignored and misused. Overview of 2G spectrum corruption: From the time allegations of misappropriation during the bidding for allocation of 2Gspectrumsurfaced, till Telecom Minister A Raja's ouster, high drama charged both politics inDelhi and Tamil Nadu. So what exactly is the Spectrum Scam led to all this? WHAT IS SPECTRUM SCAM? 2G licenses issued to private telecom players at throwaway prices in 2008 AG: Spectrum scam has cost the government Rs. 1.76 lakh crore AG: Rules and procedures flouted while issuing license

CHEAP TELECOM LICENSES Entry fee for spectrum licenses in 2008 pegged at 2001 prices Mobile subscriber base had shot up to 350 million in 2008 from 4 million in 2001 No procedures followed: Rules changed after the game had begun. Cut-off date for applications advanced by a week. Licenses issued on a first-come-first served basis. No proper auction process followed, no bids invited. Raja ignored advice of TRAI, Law Ministry, Finance ministry. TRAI had recommended auctioning of spectrum at market rates. Favouritism, Corporate encash premium: Unitech, Swan Telecom got licenses without any prior telecom experience. Swan telecom given license even though it did not meet eligibility criteria. Swan got license for Rs1357crore sold 45%stake to etisalat for Rs4200crore. Unitech wireless got license for Rs1661 crore, sold 60% stake for Rs6200 crore. All nine companies paid DoT only Rs10,772crore for 2G licenses.