New Delhi (Agencies): The report of one-man committee headed by retired Justice Shivraj Patil that went into allocation of spectrum from 2001 to 2009 said that new telecom licenses were issued in 2003 on first-come-first-serve (FCFS) basis at 2001 prices without any guidelines overlooking telecom regulator TRAI's recommendations.

"On the basis of letter of Chairman of TRAI (Pradeep Baijal) dated November 11, 2003, a decision was taken by the Minister that entry fee for the new applicants would be equal to the entry fee paid by the fourth cellular operator," the report said.

The licences were to be issued on FCFS basis but no guidelines detailing the procedure to be followed were notified, it added.

In its communication on November 4, 2003, the report said the TRAI had reiterated its recommendations of October 2003 that additional players could be introduced through
multi-stage bidding process.

The report said, "it appears that these recommendations were not placed before the Telecom Commission (highest decision making body of Telecom Ministry)."

"Only after deciding on November 17, 2003 and November 24, 2003, to follow the procedure applicable to Basic Service Licence for granting UASL and also apply FCFS criteria and to collect entry fee from the new UAS licencees as was paid by fourth cellular operator, the recommendations of TRAI dated November 4, 2003 were approved by the Minister on December 22, 2003," it said.

After this decision, 28 new UAS licences were issued in the year 2004.

The report, presented to Telecom Minister Kapil Sibal last week, said that all decisions on spectrum allocation since 2003 by successive governments, including the NDA regime, were procedurally wrong.

The report has been forwarded to CBI, who is investigating into the 2G spectrum scam.

Raja has been facing allegations of having favoured some firms and tweaked the rules of First-Come, First-Serve to help them. In all, 122 licences were given in January 2008 by him besides giving dual technology licences to Tatas, RCom and others.

The CAG has estimated a presumptive loss of Rs 1.76 lakh crore due to sale of licences in 2008.

Sibal had acknowledged Patil's findings that Raja first advanced the cut-off date arbitrarily and then did not follow the policy in letter and spirit.