New Delhi (PTI): In a new twist to the ongoing telecom controversy, a wing of employees union has come in support of Union Minister A Raja and said that the allegations of loss to the exchequer on account of non-auctioning of licences/spectrum are baseless and malicious.

Telecom Employees Progress Union has published a booklet 'Spectrum: Myth and Reality' and it has been distributed among the members of Parliament, launching a counter attack on the CPI(M) and questioning the motives behind making serious allegations against the government.

The CPI(M) had alleged that government has lost a whopping Rs 1,00,000 crore on account of non-auctioning of licences to new telecom players who have been given licences for Rs 1,658 crore (pan-India licence), a price fixed in 2001 and had demanded a probe into it.

Telecom regulator TRAI had recommended in August 2007 that in order to keep a level-playing field among the 2G service providers, 2G spectrum should not be auctioned.

Since the government had issued new licences to the existing telecom players at the same price till as late as in March 2007 (just two months prior to Raja taking charge of the telecom ministry), there was no question of increasing the price of same licence for new operators.

In fact, the union launched a counter attack saying that there existed a strong cartel of existing operators before Raja took over as it was always maintained that there was no spectrum to bring in new players.

"Not only a cartel was maintained in telecom sector, there was a surreptitious play have also been done all along by claiming that there was no spectrum for expansion. Could you imagine the real loss incurred financially and technically to this country by this coffer play?" the booklet said.