India – The evolution and corruption of licensing

Abstract

Purpose This paper aims to review the licensing in India, including the development of universal licences and of the now infamous 2G spectrum scam. Design/methodology/approach This paper is a case study drawing on a side range of official documents, including inquiry reports, policies, licences and court judgements. Findings Liberalisation of the sector introduced opportunities for lobbying and corruption that lead to very unusual market structures, with many operators and too little spectrum. Research limitations/implications Interviews with the principals were impossible. Practical implications It is now necessary for the government to adopt good governance processes, especially in respect of 4G and th inevitable consolidation of operators in a fair and equitable manner. Social implications The governance systems are incapable of controlling the corruption in the telecommunications sector and require substantial redesign. Originality/value The paper is the first to relate corporate political activity and corruption to outcomes in the telecommunications sector in India.