India – The evolution and corruption of licensing

PurposeThis paper aims to review the licensing in India, including the development of universal licences and of the now infamous 2G spectrum scam.Design/methodology/approachThis paper is a case study drawing on a side range of official documents, including inquiry reports, policies, licences and court judgements.FindingsLiberalisation 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/implicationsInterviews with the principals were impossible.Practical implicationsIt 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 implicationsThe governance systems are incapable of controlling the corruption in the telecommunications sector and require substantial redesign.Originality/valueThe paper is the first to relate corporate political activity and corruption to outcomes in the telecommunications sector in India.