The Comptroller and Auditor General has alleged that the Department of Telecommunications’ (DoT) decision to allow CDMA operators to offer mobile internet service through EV-DO technology, without conducting auction, led to revenue loss of Rs 41.87 billion to the exchequer. Operators such as Sistema Shyam (MTS), Reliance Communications and Tata Teleservices Limited are using spectrum in the 800 MHz band to offer mobile internet services.

"The non-auctioning of the spectrum in 800 Mhz (CDMA spectrum) for EVDO services resulted in non-realisation of upfront one time charge of Rs 4,187.65 crore," CAG said in a note to Department of Telecom seeking reply.

However, AUSPI, the industry body of CDMA operators has stated that EVDO is another form of CDMA and that there is no stipulation in the licence which prohibits its use. They further contended that DoT has the same understanding.

Meanwhile, DoT is of the view that EVDO services are within scope of licence held by telecom operators and use same spectrum that is used for voice service. The telecom department further said that decision to not auction 800 MHz band spectrum for EVDO service was taken in concurrence with Ministry of Finance and hence, the question of revenue loss does not arise.