India as an Information Technology Giant

Is India an IT superpower? Unfortunately, there is not much of truth in it. The reason is that the actual ground realities are not visible to anyone because the truth is swept under the carpet. It is very convenient to do so because the bosses and the media are hand in glove. Each time I see one of their ilks making forceful and forward looking statements, I have a reason to call their bluff. The IT industry comprises of multitude of companies offering consultancy services or call centers. The apex body is NASSCOM (National Association of software and Service Companies). This is more like a trade union with an official sounding name. NASSCOM has friends in the media. Hence its very easy to deflect the attention from the problems that plague the industry .I have never come across any business magazine or newspaper that has laid bare the truth about the innards of this ghetto.

It can be worst-case scenario described as one. This is because the salaries on board are far less than what a techie elsewhere would be drawing .These are in fact glorified sweatshops that have spawned all over. If Nike and Adidas are doing the same, drawing on the lower salaries paid to the third world countries; these IT companies are no different in employing cyber coolies. However, they feed on the “intellectual capital”. Despite the presence everywhere, these companies have not made an appreciable dent over the employment scenario. The major reason is the job attrition that remains a high on an average of 44%. This means that almost 44% of the people joining in the first year leave the company. Surely, there must be something wrong somewhere.

The companies have started of innovative schemes to lure back the same employees that have left the industry. However, increasingly burns out cases are frequent. Who has the right to feed on the same? However, in the current euphoria Indian IT is considered as a superpower.

Now, for the bitter reality. India has the least PC penetration in the world. The sad fact is that the taxes which remain so high on the computer components. In the previous budget, the Finance minister gave a sop for reducing the prices. However, an analysis of the same revealed that it was merely eyewash. For an effective IT policy, it should envisage almost zero duties on the computers .If you cannot make it cheap, what is the use of crying yourself hoarse.

The internet access remains a bugbear. I have often felt frustrated about the pathetic access, which plagues this country. Insofar there is no ISP has willingly stuck out its neck and gave a cheap and simple access. I had earlier mentioned that corporates are able to extract deals that help them to penalize the service providers in the event of downtime. Such luxury for the home users is unthinkable. In fact, it is as if these companies are doing us a big favor by providing connectivity. In this hoopla, how has this affected the common man on the street? I am sorry to say but in no positive manner whatsoever. However, dialup remains the main mode of access when the world is talking of broadband. Dial up that sucks big time. I have had frequent disconnections each time (BSNL) and no complaint resolution. Broadband access is very different. The recent launch of broadband by BSNL was as if a baby strangled before it could gasp for breath. Why is it that these people like to sit over the infrastructure that is created out of public funds? It’s not to say that the entire corporation has a hung up attitude. The fact remains that the lowermost level of staff is still coy about the fact that their jobs are safe. Making them accountable for the lapses would surely go a long way in changing the situation somewhat.

The optic fiber has reached in majority of homes across US. This is not the way here in India. The broadband penetration remains awful. The recent statistics indicated that it is to the tune of 0.04%. However, despite the announcement of broadband policy, it has not made any difference to the bosses at all. So much for being an IT superpower!

The fact of the matter is that the authorities would like to keep the issue at status quo. In the past 5 years that I have been tracking this industry, there has not been a commendable action on ground. Further, the fat cats seem to enjoy tax-free dollars that come with the outsourcing. This has not resulted in the increase in spending in this country nor have they contributed effectively to the nation building. If employment given by the size of InfoSys or Wipro is any indication, it is still a cause of concern. I guess the CEOs of these firms seem to be poster boys with media fawning on them. They seem to hang on their every word as if their life depended on it. How much of it is paid exposure, which remains a secret. I have a reason to believe that there is a huge market for media management. Exclusive press leaks for friendly journalists or jet setting on the companies accounts are few of the rewards. All you have to do is to elevate these sweat shops and make them venerable.
The coincidences cannot be ignored. This also reflects the need to be aware of the reality, which is far from visible. We need to be vigilant that whatever media is offering for mass consumption; not to be taken on face value.

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This post was submitted by Dr. Abhishek Puri on the Broadband Blog on Techwhack.

Tags: Airtel, Airtel Broadband, API, author, Broadband, Broadband access, BSNL, BSNL Broadband, CEO, India, Internet, journalist, Media, MTNL, Reliance, Reliance Broadband, Tata, Tata Indicom, Telecommunications India

Tata Indicom and its idiocies

If you thought that private operators have improved the availability of services, here is a personal blow-by-blow account of Tata Indicom and its idiocies. I had written a mail last year to the Customer Care centre enquiring about their Internet services in my city. At present, they have presence in the nearby city for which I would have had to pay heavy pulse charges in order to access the same since my usage is high.

I commented about the lack of digital access number for the same. I have a BSNL line, which restricts outgoing numbers only to 172xxx numbers under their promotional scheme to improve access to internet. This fact I brought to VSNL’s notice. However, the reply I got merely repeated the same issue I had raised. So much for their standard of comprehension. As the days change to weeks and weeks to months, I have a strong belief that standards of IQ are falling in the customer support across board.

Cut back to a couple of months. They tied up with a private service provider in my city for providing Internet access. However, the access to their number (172226) from BSNL was still barred. (Reflects BSNL s anti competitive policy, which denied me the right to choose).

Finally after all that happened, I chose to keep my mouth shut and waited for the assurances of their frontline staff (customer service what else) that access is being worked out. Fast-forward it to last month. VSNL had an agreement with the private operator, which was not renewed at the end of the year. The contract terminated, the existing subscribers were asked to access an alternative number, which entailed heavy pulse charges. All along the line, they promised to set up their servers that would give local access to 172226. In fact, there was an activity on the ground, but nothing came off it. The decision to set up the server never happened and they went back on their promises to provide connectivity leaving their existing customers high and dry. Last heard one of them even threatened legal action.

I was talking to the distributor concerned with the commotion, when I realized that how these people have repeatedly went on their promises. Not realizing the enormous costs to the person concerned but at the cost of the goodwill that he had earned in the market, they have almost duped him. Whatever account he gave me off VSNL was depressing to say the least. Of course, I cannot reveal my source of information in order to protect his privacy.

Tata has launched its mobile services in my city recently. I went and enquired about the Internet access. Howsoever smart these people are, it is clear that they presented themselves as sorry figures for disorganization. Heavy usage of internet is unheard off in their offices and there is no package for unlimited surfing as Reliance has. In fact, they were quite happy to deflect my queries to the same distributor for accessing the internet packs. In the course of discussion, they even did not bother to ask me about my requirements for the same. I do not expect to be pampered, but if one wants to sell a product, there is definitely a way around to do so.

The foregoing account gives me enough proof that Tata’s are best in making “Desh ka Namak”. I wish they stuck on the same. The after sales services are absolutely lousy. Despite the massive hoarding showing smiling Indian Cricket Captain, I wonder what good has it done to them. If they cannot take care of the existing customers and reneging on their commitments and promises, why would new customers ever sign up for the same?

The purpose of this post is not to trash the quality of the services because I have never used the same. Hence, I cannot comment on the same. This is something that I have experienced on a first hand basis and a personal account. I have a reason to believe that VSNL s infrastructure and the net telephony offer is excellent. A great product that is being marketed so blandly by the bosses in the saddle, it is hard to believe that they got their jobs in the first case. Or rather retained it in the first place.
VSNL is advertising itself as the pioneers in India who got Internet. It is an asinine claim because there was none other at the time. As a part of the government structure, it had to. How does this translate in being a pioneer is beyond my comprehension. If Tata after acquiring VSNL did not retrench the staff, it was their biggest mistake. I am sorry to say but they have their minds stuck in the cobwebs of inefficiency. Make the people accountable for their lapses. I am sure that despite the higher tariff structure of their plans, it is worth it to invest in the same; at least better than BSNL.

Let us hope!

Discuss on: Sify Broadband, Tata Indicom, Airtel Broadband, Reliance Broadband, MTNL – BSNL Broadband, Dial Up, Others

This post was submitted by Dr. Abhishek Puri on the Broadband Blog on Techwhack.

Tags: Advertising, Airtel, Airtel Broadband, Broadband, BSNL, BSNL Broadband, Customer Support, India, Internet, Mobile, MTNL, Opera, privacy, Reliance, Reliance Broadband, Tata, Tata Indicom, Telecommunications India, VSNL

More Mess in Indian Telecom

The recent cabinet decision for the hike in the FDI needs to be put in perspective. Foreign Direct Investment (FDI) is usually unwelcome in the interests of the nation. It is true that one needs money to grow the physical infrastructure, yet FDI is a contentious issue. Part of the reason that I am wary about the increased role of foreign players in the crucial sectors is national security. More on that later. FDI is World Bank prescription for the supposed ills of the developing economies. I am reminded of the medical term Cretinism. In this due to deficiency of a particular hormone, children fail to develop in height and intellect. They were named as cretins in the old classical medicine because they were so stunted in mental development that they were thought to be incapable of sinning. It is the same bunch of cretins that World Bank is staffed with.

As part of the US based hegemony, FDI is deemed important. It gives enough markets for the Multi Nationals to invest and the government of the host country to be a stooge for the super powers. If that sounds very harsh, that is my current opinion about the FDI or any kind of a role of a foreign national in India.

In the same vein, recent announcement of FDI hike to 74% is ill timed and uncalled for. I believe that it is a part of the concerted effort of the government to give a positive spin to the sensex before the budget is presented. Of course, the timing is a big suspect. Even if the top positions in the company are meant for Indians, with the increased money inflow I am at loss to believe as to how it would be possible for them to exert their independence. It is like giving the crucial telecom sector by proxy to the foreign powers.

Part of the condition for the security reasons that are included in the clauses is mostly eye candy for the Leftists to keep their mouths shut. It is the undeniable association of the leftists with hypocrisy wherein they support the same government at the centre whom they oppose at the state level! Enough said.

Let us face the present scenario with simple reasoning. Reliance and Tata have much wider network than all the GSM majors put together do. In the present scenario, increased FDI does not mean much to them. I believe that much of the money for the expansion has been raised from their internal resources or loans. Reliance is planning an IPO this year to raise funds from the capital markets in India. It has better bandwidth than Bharti and BSNL at present. Why are the GSM operators hungry for the increased FDI exposure? This answer is beyond me. Extending this logic, with BSNL being the credible opponent to the private players in the GSM segment, raised it resources from the public and spread out its network. True the ADC regime is killing but that is out of scope here.

The usual arguments do apply that it is a capital-intensive industry and needs funds because of long gestation period. However, if money is to be raised in the market, it calls for a clear regulatory regime and a massive overhaul of the financial system in India. This means that part of the insurance money and the pension funds so collected could ideally be used. There are increasing arguments for using our bulging foreign reserves to be used for the infrastructure development.

Despite the so-called massive growth of the telecom sector, the new guidelines stipulate that Department of Telecom would enforce the regulations. Whither TRAI? This is again asinine provision because the service provider cannot be regulator itself. Does it sound as if it is a sane proposal?

Further, I see something more sinister. I had repeatedly mentioned earlier also that the number of subscribers is a suspect. The statistics just do not add up. We have four mobile phones per 1000 population. The landlines are around 32 per 1000 population according to the figures from the Asian Development Bank. It would clearly be unreasonable to compare with the developed economies like Singapore and Malaysia. In fact, we are marginally better than Pakistan in the tele-density. Add to this, the GSM operators usually count their subscribers from the first activation of the SIM card. Hutch follows a slightly different pattern. It counts its subscribers from the first recharge.

Preceding the announcement of the hike in FDI, Airtel had been advertising as one crore smiles. That is claiming more than 10 million customers across its circles. I have a reason to believe that there are not as many customers since there is no standardized way to calculate the customers. In addition, the more number of customers shown on paper clearly makes the company attractive for valuation. Now clearly this is conjecture and my assessment is based on the media reports that have been appearing in the past few months. With the increased hike in FDI, it benefits the maximum to Idea, Bharti, and Hutch. Incidentally, the multinationals are a part of the companies per se.

I fail to understand that why media is not questioning this line of logic. It has happily gone ahead with the version dished out. There are enough naysayer who would dispute the foregoing account. However, in the interest of the national security this decision needs to be rolled back. The government should clearly retain the option to nationalize these services in case need so arises. If the foreigners exert diplomatic pressures or raise the same issues in the international fora, our national interests are paramount. In any way, the foreign money has in no way clearly made the quality of services as earth shattering. We still lack in much of the quality of service indicators and after sales services. It is interesting to see that Average Revenue per User (ARPU) for Bharti is the lowest in the GSM segment. It is the highest for Hutch.

I am sure that the decision would not be rolled back. There would be customary noises and everything else would be forgotten as time passes by. For the man on the street and as ordinary customers, there is not much in offer. For the rural customers, they would still be deprived since there is a wide difference in the paying capacity of the rural and the urban customers. Clearly, the interests of these operators lie in tapping the untapped customers in the urban areas and ignore the rural obligations under the pretext of unavailability. This is clearly against what they had pledged while being awarded licenses that rural telecom would get a boost. The telecom muddle is growing murkier and murkier by the day. In addition, so are the claims of the great Indian telecom revolution.

Discuss on: Sify Broadband, Tata Indicom, Airtel Broadband, Reliance Broadband, MTNL – BSNL Broadband, Dial Up, Others

This post was submitted by Dr. Abhishek Puri on the Broadband Blog on Techwhack.

Tags: Advertising, Airtel, Airtel Broadband, API, Broadband, BSNL, BSNL Broadband, Department of Telecom, DTH, EDGE, GSM, GUI, Hutch, India, Indians, Internet, Landline, Media, Mobile, mobile phones, MTNL, Opera, Reliance, Reliance Broadband, Tata, Tata Indicom, Telecommunications India, Telecommunications India, TRAI