Broadband Blog

Ring Side view of Indian Telecom Circus

3G Mess: New engine of growth?

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There is no authoritative verdict on Indian Telecom scene. In the absence of any concrete statistics, it becomes difficult to pin down the exact number of subscribers, the actual growth of the telecom sector and .

releases it’s numbers from the industry proclamations; it has not thought to independently audit the claims. Neither does the (or may be that I am unaware of any such publication in the ). I have criticized on many occasions and I see no merit in sinking in huge amount of funds on a technology which would get outdated in rapidly evolving 4G standards. All the more, missed a golden opportunity to set up it’s own standards for telephony thus forcing the operators to set up an ecosystem of not only the entire gamut of the telecom equipment but also. It would have spurred on demand for quality and generated much better employment prospects than importing the crap dip shit that we are forced to put up with now.

No handset comes closer in terms of oomph and style; something of the likes of an Apple with it’s iTunes store. While it is profitable, something similar is next to impossible to find here in India- the market of apps is right there but there is no serviceable product.

Nokia has failed terribly; I am definitely impressed by the new layout of it’s Ovi Store but trying to find an app that works across all platforms is like looking for a needle in a haystack. To worsen the matters, the price quoted is in Euros. If any asshole from Nokia India is reading this, please understand that its not possible to pay in Euros here because THAT is NOT the national currency. Besides that, none of the applications are a must have. No wonder, the Finns are getting clobbered left right and centre; the market share has definitely slid down to 60% as per the estimates.

This brings me to the final question. If we dont really have apps or the snazzy and the jazzy handsets, what are we really fighting for? Why should 3G should really be auctioned?

If connectivity is the SOLE criterion, then public ’s should be set up. The Wifis should be free for access upto a certain speed limit; beyond that a price mechanism be set up for higher access speeds. Or initiative be accelerated with the huge amount of Universal Service Obligation Fund (last heard it had swelled up to 18,000 crores). But well, since the lobby market exists in a big way, we can only hope.

For a better round up of the telecom scenario, please read an insightful write up on Knowledge@Wharton write up.

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Telecom Scandal India: More details

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From the world of phones…. to the real life scandals.

Rajeev Srinivasan has a list of the write ups detailing this “scandal” of monumental proportions. It is rumored to be worth…hold your breath….22 billion dollars!

Imagine the kind of money, if invested in or community Wifis would truly make us a “superpower” indeed!

I quote the relevant text (emphasis mine).

Documents available with The Pioneer show that Central Bureau of Investigation DIG Vineet Agarwal had on November 16, 2009, sought call detail records of Nira Radia from Director General of Income Tax (Investigation) Milap Jain. “It has been reliably learnt that certain middlemen, including one Ms Nira Radia of M/s Noesis Consultancy, were actively involved in the above-mentioned ( ) criminal conspiracy,” Agarwal’s letter to Jain, seeking the detailed call records, stated.

On November 20, 2009, as per Jain’s instructions, Joint Director of Income Tax Ashish Abrol provided the details of conversation between Radia and key players in the spectrum scam, including A Raja.

“There are some direct conversations between Ms Radia and the Telecom Minister. In some other conservations, Ms Radia boasts of having helped some of the telecom operators in their efforts to obtain licences/spectrums. Ms Radia has also been in regular touch with Shri Chandolia,” confirmed Abrol to the CBI. RK Chandolia was Raja’s private secretary during the time of spectrum allocation and has since been elevated as an economic adviser in the Department of Telecommunication.

Nira Radia is the person who is under scanner for lobbying in the Ministry of Telecom.

Radia is an NRI, who landed in in early 2000 for some liaison work for aviation companies. Of the nine companies that benefited from the dubious spectrum allocation by Raja, the CBI found that four companies were “serviced” by Radia.

Highly-placed sources said the CBI was denied permission by top authorities to interrogate Radia even though the telephone intercepts clearly exposed her role in the scam, which cost an estimated Rs 1,00,000 crore to the exchequer. “There are some direct conversations between Ms Radia and the Telecom Minister. In some other conservations, Ms Radia boasts of having helped some of the telecom operators in their efforts to obtain licences/spectrums.

CBI is now probing the scam. But then, CBI has been used as an instrument to intimidate rather than be of any “benefit”.

The idea is to screw up the alliance partners and make them more amenable to persuasion in the electoral political compulsions. Everyone was AWARE of the “scam”, the likes of Swam Telecom (promoted by ) who made a windfall fortune and and Unitech which erstwhile had interests ONLY in real estate.

….real estate companies Swan and Unitech bagged the spectrum license at a throw away price and they off-loaded their shares at a whopping price to multi-national telecom giants. The Swan Telecom bagged the license for Rs.1537 crore for operating in 13 circles. Within months (September) it sold its 45 per cent of shares to Etisalat, the telecom giant in UAE for 900 million US dollars (Approximately Rs.4500 crore).

Similarly, the Unitech, another real estate company too entered into a bumper deal, without investing anything in telecom infrastructure. The company got license to operate in 22 circles for Rs.1651 crore. Within weeks, it sold 60 per cent shares for Rs.6120 crores to the Norwegian company Telenor, who is currently a major telecom player in Pakistan and Bangladesh.

More here.

This is just another circus. Raja is just another player in the game. We are all suckers AS USUAL.

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Telecom Scandal India: Getting murkier

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There is no easy way out for Raja who is in ministry because of political compulsions. reports have mentioned about CBI getting into picture for sniffing out the rotten fish in .

Pioneer has been served a legal notice for it’s cover story. It was obvious.

A determined opposition is hell bent to extract maximum mileage out of it.

All the while poverty deaths are a norm. Our security and foreign policy is going for a toss. Damn.

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