Questioning the argument that 2G spectrum allocation in 2008 at 2001 prices has led to tariff cuts, MP Rajeev Chandrashekhar in a letter to Prime Minister Manmohan Singh said call rates had dropped nearly 25 per cent even before allotment of radio wavies to new entrants.

"One of the main justifications used by the government for giving away precious 2G spectrum at 2001 prices without going through the process of open, transparent auction -- thereby perpetrating the 2G scam in 2008 -- was a reduction mobile tariffs (affordability)," Chandrashekar wrote to PM as Member of Parliamentary Standing Committee on IT.

Trai data show that mobile tariffs came down from 80 paise per minute to 60 paise in 2009 even before spectrum could be allocated or services launched by new entrants, he said.

"The mobile tariff reduction had nothing to do with new entrants' tariff plans. Later, in 2010 when new entrants became operational, mobile tariffs reduced by 10 paise per minute," Chandrashekhar said.

Since new operators did not have good market share or network rollout, the dominant telecom operators were able to increase reverse mobile tariffs, he said.

"They announced a 20 per cent hike across several packages this year not just for 3G but even for 2G voice. In fact mobile operators threatened further hike in mobile tariffs for the first time in India' 16-year telecom industry," Chandrashekhar said.

Blaming the government's policy and "delay" in decision making for the telecom sector's "dismal performance," Chandrashekhar said timely implementation of Trai's recommendation on spectrum pricing could make the government collect additional income of Rs 10,000 crore for 2011-12.

He added that inability of DoT to cancel 85 telecom licenses mentioned by CAG has lead to hoarding of spectrum.

Chandrashekhar, in his letter, said that finalisation of National Telecom Policy 2011 could be delayed by nearly a year which will hamper many decision related to telecom industry.

The MP said that government has not taken action against DoT officials found guilty by One-Man Committee.

"Merely handing the report over to CBI is a gross abdication of duty on the part of the Hon'ble MoCIT since regardless of whether or not the CBI can frame such officers based on its FIR or the orders of the Supreme Court dated 16th December 2010," Chandrashekhar said.