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Wednesday, February 2, 2011

AIADMK chief J Jayalalithaa todaysaid the arrest of former Telecom Minister A Raja in the 2Gspectrum scam raised more questions than answers and allegedthat it was a "purely political" decision keeping in mindTamil Nadu Assembly polls.Jayalalitha is

Nifty ends above 5400;A Raja arrest spooks sentiments

CAG reports serious lapses in PF Accounts

AIADMK chief J Jayalalithaa todaysaid the arrest of former Telecom Minister A Raja in the 2Gspectrum scam raised more questions than answers and allegedthat it was a "purely political" decision keeping in mindTamil Nadu Assembly polls.Jayalalitha is CORRECT.She also demanded the arrest of others, including immediate family members of Chief Minister M Karunanidhi,allegedly involved in the scam and said her party will notgive up its demand for a Joint Parliamentary Committee probeinto the scam despite Raja''s arrest.Raja arrested; who is next- Kalmadi, BSY or Chavan?

Former Telecom Minister A Raja has been arrested by the nation's top most investigating agency CBI on Wednesday, Feb 2. Now the arrest of Raja leads to questions on the PM's integrity. The former Telecom Minister's arrest in the scam case will be an embarrassment for the government. Multiple agency probe in the 2G spectrum scam, reached the door steps of many top executives, political leaders, industrialist, and journalists in connection with scam case and finally detained Raja after grilling him for the fourth time.

Few days back the new Telecom Minister Kapil Sibal had ridiculed the CAG Auditors report and said, "(it) had no basis and was utterly erroneous."According to the CAG report the irregularities in the allocation of 2G spectrum, during the tenure of Raja had caused a loss of 1.76 lakh crore to the exchequer, a scam that can be termed as a biggest scam ever before.Later, the Supreme Court (SC) reprimanded Sibal for his statement over the CAG report and asked him to behave with some sense of responsibility.


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Few days back the new Telecom Minister Kapil Sibal had ridiculed the CAG Auditors report and said, "(it) had no basis and was utterly erroneous."According to the CAG report the irregularities in the allocation of 2G spectrum, during the tenure of Raja had caused a loss of 1.76 lakh crore to the exchequer, a scam that can be termed as a biggest scam ever before.Later, the Supreme Court (SC) reprimanded Sibal for his statement over the CAG report and asked him to behave with some sense of responsibility.


But, Former Telecom Minister A Raja has been arrested by the nation's top most investigating agency CBI on Wednesday, Feb 2. Now the arrest of Raja leads to questions on the PM's integrity. The former Telecom Minister's arrest in the scam case will be an embarrassment for the government. Multiple agency probe in the 2G spectrum scam, reached the door steps of many top executives, political leaders, industrialist, and journalists in connection with scam case and finally detained Raja after grilling him for the fourth time.

Raja arrested; who is next-Kalmadi, BSY or Chavan?

DMK leader and former communications minister A. Raja was Wednesday arrested after CBI questioned him for hours together in connection with the the 2G spectrum scam for the second time this week.

Along with him, CBI also arrested his aides RK Chandolia and Siddharth Behuria.

Raja has been arrested under sections 120B, 13(2), 13(1D) of Prevention of Corruption Act on the charges of criminal misconduct, violation of policies and favouring some specific companies during the grant of 2G spectrum licences.

"Based on the fact so far in the investigation in 2G spectrum scam, CBI today in the case of unified access license and irregularities in spectrum arrested A Raja, former telecom secretary Siddharth Behuria and RK Chandolia, personal secretary to Raja. Earlier CBI registered a case against unknown officials of Department of Telecom and private persons," said CBI (DIG) Anurag.

More arrests are likely in the case with sources saying that former Telecom Regulatory Authority of India chairman Pradeep Baijal and Raja's brother AK Perumal are also under CBI's radar.

Raja, who reached the CBI headquarters here Wednesday morning for further questioning, had also been quizzed Dec 24 and 25, 2010. The CBI had on Tuesday quizzed Perumal and a close associate in connection with the Rs 22,000 crore 2G spectrum scam.

The Supreme Court had asked CBI and Enforcement Directorate to submit status reports on their investigations into the 2G spectrum case to it by February 10 when the case will come up for further hearing.

Raja had to step down as minister in November last year following allegations that second generation spectrum was sold to mobile companies at below market prices causing huge losses to the government. He had denied charges of wrongdoing.

Chandolia was Raja's private secretary during UPA first tenure. When the UPAs returned to power in May 2009, and Raja returned as Telecom Minister, Chandolia was appointed the Economic Advisor to Raja's ministry.

CBI sources say Chandolia interacted with the licensees who were allegedly sold 2G frequency at bargain-basement prices by the Telecom Ministry.

Siddharth Behuria was the Telecom Secretary January 1, 2008 to September 30, 2009. He signed off on the files that formalized the sale of 2G licenses.

The CBI has also raided the premises of corporate lobbyist Niira Radia, who allegedly played a key role in ensuring that Raja got the communications portfolio.

The arrest also comes two days after DMK Chief M Karunanidhi held discussions with Congress President Sonia Gandhi and Prime Minister Manmohan Singh to firm up the alliance between the two parties for the coming Assembly elections in Tamil Nadu.

Both the parties have ruled out Raja''s arrest having any impact on the political tie up between the two parties. "What has happened is law taking its course and it has nothing to do with the political alliance," Congress spokesperson Abhishek Singhvi told reporters at the daily AICC briefing.

However, the opposition parties are unimpressed with the CBI action describing it as "too little, too late" facing the Supreme Court deadline and made it clear that they would not not resile from their demand for constitution of a Joint Parliamentary Committee (JPC) to go into scam.

DMK's arch rival AIADMK went a step further and demanded the arrest of corporate lobbyist Niira Radia and family members of Karunanidhi who had conversations with Radia.


"The Prime Minister maintained even late last year that Raja did nothing wrong, he did what his predecessor did. (Kapil) Sibal maintained a fortnight ago that Raja had caused no loss to the exchequer," Jaitley said.
more by Arun Jaitley - 23 minutes ago - Hindustan Times(3 occurrences)


1 FEB, 2011, 04.10AM IST, VIKAS DHOOT,ET BUREAU

CAG reports serious lapses in PF Accounts

NEW DELHI: The country's chief auditor has found serious lapses in the accounts of the provident fund department, the custodian of the retirement savings of over 5 crore formal sector workers.

The finance ministry had asked the Comptroller and Auditor General (CAG) of India to do a special audit of the Employees' Provident Fund Organisation (EPFO) to ascertain the source of 1,731 crore 'surplus' found in its past accounts.

Labour Minister Mallikarjun Kharge had raised the interest rate on PF deposits for 2010-11 to 9.5% from 8.5% based on this surplus.

While the CAG audit could not verify the 'adequacy' of the surplus, it has red-flagged a slew of concerns on EPFO's accounting practices that could have a significant impact on its liabilities.

The auditor found differences of about 2,580 crore between the balance sheet figures of EPFO's different schemes and the investment details furnished by it.

"The EPFO is violating Accounting Standard 13, which deals with investments," the CAG report said. For instance, the provident fund has a balance of around 169,650 crore, but the EPFO could only provide investment details of 168,280 crore - translating into a gap of 1,366 crore. The Employees' Pension Scheme ( EPS )) has a similar gap between investments and stated balance of nearly 1,150 crore.

The CAG pointed out that the pension scheme's liabilities could also be impacted by the government's failure to conduct the mandatory annual valuations of the scheme.

"The valuation report as on March 31, 2006, has not yet been adopted by the central board/government and the annual valuation for 2007-08, 2008-09 and 2009-10 is yet to be conducted," it noted with concern.

A rising trend of irregular payments and overpayments by the EPFO was pointed out by the CAG as a 'serious system lapse'. Overpayments had grown from 0.78 crore in 2005-06 to 2.25 crore in 2009-10, while irregular payments grew marginally from 5.15 crore to 5.35 crore in the same period. The auditor also found that remittances from regional PF offices to the head office remained in transit for an unusually long period.

Of 81.66 crore classified as remittances in transit by the EPFO, 79 crore had been in transit for over a year.

The 8,319 crore balance in inoperative accounts, which have not received any fresh contributions for three years or more, was understated by about 69 crore.

This was due to incorrect disclosures by one of the 40 regional PF offices, whose accounts were scrutinised.

As per the CAG, EPFO's own administrative accounts are also riddled with accounting follies.

For instance, no depreciation was provided on buildings, resulting in understatement of expenditure and overstatement of the department's fixed assets. Worse, expenditure on fixed assets, other than land and buildings, is treated as revenue expenditure.

"The accounting policy of charging expenditure on fixed assets as revenue expenditure is in violation of accounting principles and Accounting Standard 10 ," the government's auditor stressed.

Though the EPFO is an autonomous body under the government of India, the auditor pointed out that it has not yet adopted the common format of accounts prescribed by the finance ministry. In November 2009, the PF department had informed the CAG that it is likely to adopt the common accounts format for 2011-12.
http://economictimes.indiatimes.com/news/economy/finance/cag-reports-serious-lapses-in-pf-accounts/articleshow/7401238.cms

Nifty ends above 5400;A Raja arrest spooks sentiments
2 FEB, 2011, 05.54PM IST,ET BUREAU
MUMBAI: Indian markets ended its 5-day losing streak and ended with modest gains led by gains in realty, oil&gas and technology stocks . While positive cues from the global peers provided supports, political development back home dampened sentiments towards the end of session.

Benchmarks gave away most of the intraday gains after the Central Bureau of Investigation arrested of former telecom minister, A Raja , 2G telecom scam case. According to analysts, the market is near strong support level and may see a pull-back rally in coming sessions.

" Nifty has a strong support at 5400 and we expect a short pull-back rally up to 5600-5650. With no major expectations from the budget as GST and insurance bill are likely to get delayed, Nifty may remain range bound with negative bias for some time.

Above comfort zone inflation is also likely to keep the bulls away. Things may start looking positive from next quarter onwards," said Akash Gopawar, vice president, Investments, Systematix Shares.

Bombay Stock Exchange's Sensex closed at 18090.62, up 68.40 points or 0.38 per cent. The 30-share index touched a low of 18042.61 and high of 18306 intraday.

National Stock Exchange's Nifty ended at 5432, up 14.80 points or 0.27 per cent. The 50-share index touched a low of 5415.65 and high of 5490.60 in trade so far.

BSE Midcap Index was down 0.03 per cent and BSE Smallcap Index moved 0.08 per cent higher.

Amongst the sectoral indices, BSE Realty Index moved 2.40 per cent higher, BSE Oil&gas Index gained 1.85 per cent and BSE IT Index advanced 0.90 per cent. BSE Power Index declined 1.34 per cent and BSE Capital Goods Index slipped 0.96 per cent.

Tata Motors (3.67%), TCS (3.55%), Reliance Industries (3.07%), Bharti Airtel (2.49%) and HCL Tech (2.34%) were the top Nifty gainers.

Bharti Airtel's consolidated net profit declined to Rs 1303.3 crores for its quarter ended December 2010 as against Rs 2194.8 crores a year ago. Revenue rose Rs to Rs 15756 crores from Rs 10305.3 crores in the same period a year ago.

Hero Honda (-6.12%), Bajaj Auto (-3.06%), HDFC (-2.98%), NTPC (-2.83%) and BHEL (-2.68%) were the top losers.

Market breadth was positive on the NSE with 1451 gainers as compared to 1396 losers.

Meanwhile, the European markets were in the positive terrain and the US stock futures indicated a mixed start. At 5:15 pm IST , Dow Jones futures was up 0.10 per cent, S&P 500 moved 0.07 per cent higher and Nasdaq slipped 0.04 per cent.

Market fell on account of FII selling; fundamentals strong: FM
Attributing the fall in stock markets in the past few days to selling by FIIs, Finance Minister Pranab Mukherjee today asserted that the fundamentals are strong and the economy will clock 8.5 per cent growth in the current financial year.

The volatility in stock market has been on account of "continued selling by FIIs," he said, adding the Indian economy has "strong fundamentals".

"While the stock market has its own mind and it take cues from developments all around, I want to take this opportunity to retreat the strong fundamentals of the Indian economy," Mukherjee told reporters here.

The benchmark index Sensex of the Bombay Stock Exchange had lost 5.90 per cent in the past five trading sessions with investors resorting to hectic selling in wake of Egypt crisis and high inflation etc.

The markets, however, recovered today gaining 68 points to close at 18,090.62 points.

The government, Mukherjee said, would stick to the growth projection of 8.5 per cent for the current fiscal. The economy expanded by 8 per cent during 2009-10 and recorded 8.9 per cent growth rate in the first half of the current fiscal.

"I am confident that we will meet our growth projection for the year...(2010-11) will end with a better than projected fiscal balance and more moderate inflation," Mukherjee added.

While the price rise had been a problem for the government after the food inflation soared to 18.32 per cent for the week ended December 25, the fiscal deficit is likely to moderate on the back of higher revenue growth and better the anticipated realisation of funds from sale of 3G spectrum to telecom companies.

"There has been fluctuations (in inflation). At one point of time, food inflation went as high as 18.32 per cent. In the large economy like India, these kinds of periodic fluctuation's are not unusual," he said.

In the remaining three months, the Minister added, "there may be some fluctuations".

Raja arrested, CBI claims clinching evidence
HT Correspondent, Hindustan Times
New Delhi, February 02, 2011
First Published: 15:38 IST(2/2/2011)
Last Updated: 19:37 IST(2/2/2011)


Former telecom minister A Raja was arrested on Wednesday along with his two former associates in connection with the 2G spectrum scam. CBI believes it has clinching evidence against Raja on two charges: he illegally favoured certain companies in granting spectrum and got monetary

related stories

benefit.

Raja will be produced before a special CBI judge on Thursday at the Patiala House court complex in New Delhi.

CBI officials told Hindustan Times Raja was not cooperating with the investigation and was evading their questions.

The arrests come eight days before the CBI had to file a progress report before the Supreme Court on what progress it had made in its investigation into the 2G scam.

Incidentally, Congress president Sonia Gandhi met Tamil Nadu chief minister and Raja's party chief M Karunanidhi in New Delhi on Tuesday.

Raja arrived at the CBI headquarters on Wednesday morning, a day after his brother A K Perumal was questioned by the CBI about alleged funding of some front organisations owned by telecom companies which had been allocated spectrum from October 2007 to January 2008, official sources said.

Raja, his former personal secretary R K Chandolia and former telecom secretary Siddartha Behura were arrested for allegedly abusing their official position and manipulating the tendering procedures to benefit certain telecom companies in getting the spectrum.

The arrest of 47-year-old Raja, who has been questioned four times by the agency, comes over two months after he was forced to resign in the wake of the spectrum controversy.

Raja, who was questioned earlier on December 24 and 25 last year and January 31, was called to the CBI office this morning and quizzed before being arrested, the sources said.

The DMK MP had been confronted with some questions and documents recovered from the computers seized during searches conducted by the investigation agency earlier at his premises, the sources said.

He was also asked about his conversations with corporate lobbyist Niira Radia and the reasons for advancing the cut-off date of applying for license for spectrum allocation in 2007 by a week.

Raja was forced to resign on November 14 last year in the wake of the CAG report which held that the spectrum allocation at undervalued prices resulted in a notional loss of Rs 1.76 lakh crore to the state exchequer.

He got the telecom portfolio on May 18, 2007 and was re-elected as a Member of the 15th Lok Sabha and continued as Telecom Minister from May 31, 2009, till November 14, 2010.

The Supreme Court has asked CBI and Enforcement Directorate to submit status reports on their investigations into the 2G spectrum case to it by February 10 when the case will come up for further hearing.

In its FIR, CBI mentioned the loss in spectrum allocation as Rs 22,000 crore based on CVC findings which had referred the case to it.

CBI has also questioned former Telecom Regulatory Authority of India (TRAI) chief Pradip Baijal, a 1966 batch IAS officer of Madhya Pradesh cadre, and former Telecom Secretary D S Mathur in connection with the case.

2G scam explained | TN politics heats up

(With PTI inputs)

http://www.hindustantimes.com/rssfeed/Chunk-HT-UI-HomePage-TopStories/Raja-arrested-CBI-claims-clinching-evidence/Article1-657613.aspx

AIADMK chief J Jayalalithaa todaysaid the arrest of former Telecom Minister A Raja in the 2Gspectrum scam raised more questions than answers and allegedthat it was a "purely political" decision keeping in mindTamil Nadu Assembly polls.Jayalalitha is CORRECT.She also demanded the arrest of others, includingimmediate family members of Chief Minister M Karunanidhi,allegedly involved in the scam and said her party will notgive up its demand for a Joint Parliamentary Committee probeinto the scam despite Raja''s arrest.

The Comptroller and Auditor General (CAG) report was tabled on the parliament on Nov 2010, since then the Congress-led UPA government and a major ally DMK, drew flak from Opposition, people and other institution of the country. People ridiculed PM Manmohan Singh's silence and his inaction over the 2G issue.Karunanidhi continued to defend Raja in the spectrum issue and argued Raja's hands are clean. Later, the CBI raids at Raja's residence and office created a major embarrassment to the party. Already Opposition parties in Tamil Nadu are holding the rallies over the spectrum and trying to cash in on the issue as much as possible. At present Raja's arrest will allow the Opposition to trash the public image of the party to the maximum and will intensify the election mood.


Raja's arrest is likely to escalate the spectrum embarrassment in Tamil Nadu for the DMK party, while the state polls round the corner. The DMK supremo and Tamil Nadu chief Minister M Karunanidhi, earlier, in his customary letter to his party's official daily Murasoli said, "What people have seen, heard are not true. Only the investigation can reveal the truth."The spectrum issue paralysed the Parliament proceedings for the whole winter session. The Opposition demanded a Joint Parliamentary Committee (JPC) probe into the 2G scam but the government stood strong in its stance and denied the constitution of JPC. The friction between the ruling and Opposition rendered the winter session futile. The last half of 2010 proved as a scam revealing period which exposed several powerful politicians involved in different hawala scams which caused the country a huge loss. One of the prominent among them was former telecom minister A Raja's involvement in 2G Spectrum scam.

While BJP commented on the arrest as "too little, too late," Congress-DMK assured that Raja's arrest would not harm the ties between the parties in UPA government.

Now, Raja's arrest raised questions that whether CBI will arrest the alleged politicians and other powerful people in several scams that hit India during 2010-11.

The prominent scams and alleged names of the Indian babus:

Suresh Kalmadi - The residence and office of former chief of Commonwealth Games Organising Committee (CWG OC) Suresh kalmadi have been raided by CBI. Kalmadi have been accused of misappropriate budget handlings of CWG 2010.

Suresh Kalmadi in CWG scam

BS Yeddyurappa - Despite following strict rituals and God's blessing, Karnataka CM BS Yeddyurappa hit the nation and the state with its alleged role in multi crore land scam.

Yeddyurappa in land scams

Ashok Chavan - CBI has filed an FIR against foremer Maharshtra CM Ashok Chavan for his tainted role in the Adarsh Housing Scam. Chavan was forced to resign from his post over his alleged role in the scam.

Chavan in housing scam

Now, people in the country will eagerly wait for the next grievous and important steps of the CBI which can make one niche for the investigation agency of the country.

The Central Bureau of Investigation (CBI) on Wednesday arrested a former Telecoms Minister Andimuthu Raja over a massive graft scam, local television said, a huge blow for Prime Minister Manmohan Singh and efforts to pass bills in the parliamentary budget session.

Raja belongs to a parliamentary ally of the ruling Congress party and his arrest may spark tension between coalition partners and galvanise an opposition that has blocked parliament since November to protest the scandal over mobile phone licences.
The sale of below-market price licences, which a government audit says may have cost India up to $39 billion in lost revenues, is the biggest scandal to have hit India in decades.
Singh, the 78-year-old prime minister who won re-election in 2009, is accused by the opposition of failing to act against Raja when complaints were raised, and the scandal could overshadow Congress's campaign to win key state elections this year.
"I only wish that the prime minister instead of living in denial had acted three years ago so this huge, monumental loss to the public exchequer had not taken place," Arun Jaitley, a Bharatiya Janata Party (BJP) leader, told reporters.
But the Congress party defended Singh, saying he had acted in accordance with the law of the land.
"Nobody will accept that the credibility of the Prime Minster or the government has been affected. That's absolutely wrong...The integrity of the government is enhanced by allowing law to take its own course independently and objectively," Congress spokesman Abhishek Manu Singhvi told reporters.
Raja, who was sacked in November, is charged with misuse of his ministerial office to benefit others, criminal misconduct and having unaccounted assets, local television channels reported. Raja, who belongs to the regional DMK party from Tamil Nadu, has denied any wrongdoing.
The Central Bureau of Investigation has declined to comment.
Investigators also arrested R.K. Chandolia, Raja's personal aide, and Siddharth Behura, the former telecoms secretary during the time of the spectrum sale, television channels reported.
PARLIAMENTARY SHUTDOWN
The opposition has shut down parliament since early November, demanding a joint inquiry into the scandal and further disruption could hit the next session of parliament in late February when the budget is due to be debated.
The government has refused to hold a joint parliamentary inquiry, fearful it could lead to senior figures like the prime minister testifying while also overshadowing both the state elections and a 2014 general election.
The BJP repeated its demand for a full inquiry.

Reuters

DMK men indulge in violence in Raja's Perambalur district

STAFF REPORTER

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DMK supporters stage a road roko on the Tiruchi-Chennai National Highway at Perambalur on Wednesday. Photo: Special Arrangement

Supporters of former Telecom Minister A. Raja stoned two government buses and blocked traffic on the Tiruchi-Chennai National Highway in his native Perambalur district on Wednesday evening protesting against his arrest by the Central Bureau of Investigation (CBI), in connection with the 2G spectrum scam.

Scores of DMK cadre and members of Viduthalai Chiruthaigal Katchi indulged in the road blockade on the national highway, triggering a major traffic snarl. Vehicles formed a serpentine queue for a few kilometres on either side. Burnt tyres were flung to the middle of the highway, eyewitnesses said.

Earlier, a group of partymen blocked the road at Thuraimangalam and broke glass panes of buses belonging to Tamil Nadu State Transport Corporation.

The protestors at the national highway reportedly vent their ire at media persons. A slogan-shouting group was said to have roughed up the reporter ofJaya TV and snatched his camera. The photographer of Dinakaran was also not spared, eyewitnesses added.In the neighbouring Ariyalur district, partymen staged a protest in the bus stand, bringing traffic to a standstill. They raised slogans charging the Congress party with getting Mr. Raja arrested by the CBI with an ulterior motive and demanded his immediate release.

Keywords: Raja arrest, 2G spectrum scam, Dravida Munnettra Kazhagam

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Raja arrest will not affect ties with DMK, says CongressRaja's arrest too little, too late: BJPCBI questions Raja for third time2G regularisation subject to our final orders: courtSpectrum: Shivraj Patil report identifies erring officialsRaja's arrest a purely political decision: JayalalithaaRaja, aides arrested in 2G spectrum scam

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http://www.thehindu.com/news/states/tamil-nadu/article1149583.ece?homepage=true



Congress on Wednesday dismissed suggestions that the arrest of former telecom minister A Raja in the 2G spectrum allocation scam would affect the credibility of Prime Minister Manmohan Singh.

"Apart from you, there is no one in the world who will say that the credibility of the Prime Minister or the government is affected. It has allowed the law to take its own course, independently and objectively," party spokesman Abhishek Singhvi told a mediaperson who posed a query in this regard.

He was responding to a volley of questions at the AICC briefing including whether the action of the CBI had affected the credibility of the Prime Minister and raises questions about his accountability as also the issue of collective responsibility of the Cabinet.

His refrain was that the arrest of Raja reflected the "credibility of the government...whether innocent or guilty ....has allowed law to take its own course unlike other governments".

He dubbed as "absurd" suggestions that the entire government needed to be blamed for the scam on the principle of collective responsibility. "Collective responsibility in the constitutional sense has nothing to do with criminal liability".

He also brushed aside AIADMK supremo J Jayalalithaa's demand that the entire family of Tamil Nadu chief minister and DMK supremo M Karunanidhi be arrested following the action against Raja. "You cannot start criminal proceedings against anyone just because someone has made a demand".

Replying to another question, he said the development would not have any bearing on the Cong-DMK alliance in poll-bound Tamil Nadu. "It is absolutely no reflection on the alliance. It is continuation of a legal process".

"These are all different aspects. Do not mix up. No minister has talked about the issue of criminal liability", he said when asked about telecom minister Kapil Sibal's recent statement that there has been no revenue loss to the government on the 2G issue, a remark which was seen by the opposition as supportive of Raja.

A senior Congress leader, who declined to be identified, sought to project the arrest of Raja as also the FIR against former Maharashtra chief minister in the Adarsh Housing scam as steps that would raise the credibility of the party. "Which other party or government has taken such action against its own minister and chief minister?", he asked.

His contention was that the arrest of Raja and the action in the Adarsh case would help end the deadlock in Parliament.

Speaking separately, AICC general secretary Janardan Dwivedi dismissed as a "silly judgement" a question whether the arrest of a former minister in the UPA government showed that the dispensation was corrupt.

Read more: Raja's arrest does not affect credibility of PM, govt: Congress - The Times of India http://timesofindia.indiatimes.com/india/Rajas-arrest-does-not-affect-credibility-of-PM-govt-Congress-/articleshow/7412756.cms#ixzz1CoMtPJmo

If Sibal was right, then why Raja's arrest, asks Yechury

IANS, Feb 2, 2011, 05.40pm IST


NEW DELHI: Communist Party of India-Marxist (CPM) leader Sitaram Yechury Wednesday said that if the new communication minister, Kapil Sibal, was right when he said there was no problem in the allocation of 2G spectrum, then why did the CBI arrest his predecessor A Raja.

"If Sibal was right, then why the arrest," Yechury told a TV channel after reports of the CBI arresting Raja and two of his aides were flashed across the media.

"It only vindicates our position that there is very very deep malaise behind the scam," he said.

The CPM leader said that the issue was not only about the investigation which is being conducted by the CBI under the supervision of the Supreme Court.

"The bigger issue is how was the system allowed to be manipulated in such a huge way," he said, adding that the party's demand for a joint parliamentary committee probe into the matter was vindicated.

Read more: If Sibal was right, then why Raja's arrest, asks Yechury - The Times of India http://timesofindia.indiatimes.com/india/If-Sibal-was-right-then-why-Rajas-arrest-asks-Yechury-/articleshow/7412184.cms#ixzz1CoNboAAs

Chidambaram statement on CVC an afterthought: Sushma Swaraj

PTI, Feb 2, 2011, 03.19pm IST

NEW DELHI: Leader of the Opposition in Lok Sabha Sushma Swaraj today termed as an "afterthought" home minister P Chidambaram's claim that he had not misled the CVC selection panel and his contention that the BJP leader was making "thoughtless allegations".

"I have seen that (Chidambaram's) statement. I have to only say that if he knew the case was pending it was the primary duty of the government to apprise the selection committee of that. They did not do that," she told reporters.

"All that he is saying are afterthought... These facts are absolutely irrelevant," she added.

Earlier in the day, Chidambaram had refuted Swaraj's charges that he had misled the CVC selection panel about the Palmolein case pending against P J Thomas.

"I take exception to the statement by Sushma Swaraj... that I had 'misled the selection committee' and told the committee that Thomas had been 'acquitted'," Chidambaram said in a statement.

He said Swaraj is "tying herself in knots" by making "thoughtless allegations".

However, Swaraj stood her ground despite Chidambaram's claims.

"The first thing which he committed was that he concealed this information from the selection committee. It was me who brought this to the committee that there was a case and then he (Chidambaram) said he (P J Thomas) was acquitted," Swaraj said.

Read more: Chidambaram statement on CVC an afterthought: Sushma Swaraj - The Times of India http://timesofindia.indiatimes.com/india/Chidambaram-statement-on-CVC-an-afterthought-Sushma-Swaraj/articleshow/7411288.cms#ixzz1CoO3s83p

2G scam takes new turn: 'CAG report was wrong'

Friday, January 7, 2011, 18:05 [IST]

New Delhi, Jan 7: After all protest, resignation, allegation, and investigation, now a shocking news from Telecom Minister Kapil Sibal seemed to take a whole new dimension in the 2G spectrum scam.


Read: 2G spectrum scam: CAG report before PAC

"We are extremely pained at methodology adopted by CAG (Comptroller and Auditor General) for arriving at 2G spectrum (allocation loss) figures... that have no basis," Telecom Minister Kapil Sibal stated.

The CAG estimates on losses arising from sale of 2G spectrum, the minister added, were "utterly erroneous".

Asserting that there were actually no losses to the exchequer, Sibal said, "CAG has done injustice to itself and the Opposition is doing injustice to aam aadmi."

The CAG in its 77-page report of CAG, tabled in Parliament in Nov, 2010 had said that due diligence was not followed and even the recommendations of the telecom regulator TRAI were "not followed in spirit".

The report said, the "presumptive" loss caused to the exchequer through spectrum allocation to 122 licensees and 35 dual technology licenses in 2007-08 was Rs 1,76,645 crore. It arrived at the figure on the basis of 3G auction held earlier this year in which the government mopped up over Rs 67,000 crore.

OneIndia News

(With inputs from PTI)

DMK president M Karunanidhi on Tuesday said there was no possibility of PMK joining the DMK-led front for the coming Assembly polls in Tamil Nadu. "There is no question on this after PMK founder S Ramadoss had denied my statement made at Delhi that PMK would be part of our alliance," he  
said.He said he made the remarks on his assumption that PMK wanted an alliance with the DMK. His statement was based on the talks between various leaders of both the parties, Karunanidhi said.
Asked why Ramadoss had refuted his statement, Karunanidhi shot back, "Go and ask this question to him."

Shortly after Karunanidhi's announcement on the alliance, Ramadoss said his party has not yet taken any decision.

Karunanidhi said during his visit to New Delhi, he had talks with Sonia Gandhi on the alliance between Congress and DMK.

Asked whether the arrest had something to do with Congressand DMK firming up their alliance with the visit ofKarunanidhi to Delhi two days ago, she said the whole thinglooked "very artificial and deeply suspicious".

She believed that the decision to arrest Raja was takenkeeping in mind the Assembly elections in Tamil Nadu. It was a"purely political" decision, she said.

"Raja''s arrest raises more questions than it answers andmany questions have been left unanswered. This arrest can bedescribed only as an action too little, too late," she said.

Alleging that the action came three years late, she said,"The government would have arrested him three years ago, atleast two years, one year or even when the Supreme Court askedwhy Raja was not arrested."

She said the government was contradicting itself as itsdifferent arms were giving contradictory statements. "Thegovernment has contradicted itself. CAG says the allocationhas led to enormous loss to the tune of Rs 1.76 lakh crore.

"But, Telecom Minister Kapil Sibal, whom I presume spokeon behalf of the government, claims that Raja did not causeany loss to the exchequer and even came up with an argument ofzero loss. But then why did CBI, another arm of thegovernment, arrest him. If Raja had done nothing wrong, whyhas he been arrested?" the AIADMK leader posed.

Raja down, Opposition up in TN politics
HT Correspondent, Hindustan Times
Chennai, February 02, 2011
 Email to Author

First Published: 18:46 IST(2/2/2011)
Last Updated: 18:48 IST(2/2/2011)


The arrest of former union telecom minister A Raja has heated up Tamil Nadu politics too with the state going in for assembly elections due in May. For the opposition AIADMK, this has come in as an additional booster for its campaign on corruption. AIADMK supremo J Jayalalithaa is going in for the


kill. Reacting to the arrest of former telecom minister A Raja the AIADMK supremo said it was an action that was too late and left out other partners in crime.
What about Niira Radia and family members of DMK patriarch and Chief minister Kanunanidhi, she asked. Niira Radia was heard talking to Kanimozhi and her mother and Karunanidhi's wife Rajathiammal.

There is prima facie evidence against them, AIADDMK supremo said adding that the mere arrest of A Raja, former telecom minister, is a half baked action which is three years too late, Jaya TV reported. This action could have been taken three years ago and why have they chosen to act now, she questioned hinting that it was motivated by electoral prospects.  

Jayalaithaa said that the arrest was only to show that some action was being taken to the Supreme Court.  The timing of the arrest make it artificial and deeply suspicious, she told the TV channel.

Reiterating her firm demand for a JPC, she said AIADMK will go all out to demand JPC as only it can bring out the entire truth when different arms of the Indian government have contradicted themselves. The CAG has estimated the revenue loss to be Rs 1.76 lakh crore and union telecom minister speaking on behalf of the Indian government has said there has been zero loss and yet another branch of the government, the CBI arrested Raja.

"If he is honest and has done no wrong why has he been arrested," Jayalalithaa asked and said it now seems there is solid evidence for the nation to link Karunanidhi family to the 2G Spectum scandal. Corporate lobbyist Niira Radia was heard talking to Karunanidhi's wife Rajathiammal and their daughter Kanimozhi.

The CPM state unit secretary too described as the arrest as too little too late and said the party will be firm on its demand for JPC. He told press persons in Chennai that the CBI should file proper chargesheet and take the case to its logical end and more important, all people involved in the scam must be booked. Which is why we have been demanding a JPC probe, which only can bring out the whole truth, he said.

Janata Party president Subramaniam Swamy told reporters that his constant role as a watchdog in the case has helped. This is the beginning of a chance in politics, he said.

The ruling DMK is however silent on the development, but sources said that the imminent arrest was known and Raja was informed about it. The party headquarters wore a deserted look and even at the state secretariat, scribes waited for hour for a bite of the chief minister, without luck so far.
http://www.hindustantimes.com/Raja-down-Opposition-up-in-TN-politics/Article1-657683.aspx

Raja's arrest does not affect credibility of PM, govt: Congress

Times of India - ‎26 minutes ago‎

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"I only wish that the prime minister instead of living in denial had acted three years ago so this huge, monumental loss to the public exchequer had not taken place," Arun Jaitley, leader of main opposition Bharatiya Janata Party (BJP), told reporters.

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02/02/2011

What is 2G? What is 2G scam?

The spectrum allocation scam, which relates to the allotment of electromagnetic waves to mobile phone operators, has proved to be the albatross around the IT and Telecom Ministry's neck.

The government has been jolted by controversy over licences and radio airwaves that a state auditor says were given out too cheaply, depriving the government of up to $39 billion in revenues.

The telecom minister, A Raja, was forced to resign and Prime Minister Manmohan Singh has been asked to explain himself to the Supreme Court. Opposition parties want a full parliamentary probe and have blocked proceedings until the government relents.

So, what is the controversy all about and what does it mean for the telecom sector and companies?

What is 2G spectrum?

2G is short for second generation wireless telephone technology. Three main benefits of 2G over their predecessors are: 

a: phone conservations are digitally encrypted; b: 2G systems are far more efficient on the spectrum allowing for greater mobile phone penetration levels; c: 2G introduces data services for mobiles.

Where was the alleged scam?

In 2008, the country issued 122 new telecom licences and the second-generation radio spectrum bundled with it to several domestic companies that had little or no experience in the telecom sector, and at a price set in 2001.

The state auditor said that the allocation process did not reflect the correct value of radio spectrum as there was no auction and the entire process was flawed, benefiting selected companies. The auditor said that the telecoms ministry did not do the requisite due diligence, granting 85 out of the 122 licences to ineligible applicants.

The auditor also said the ministry did not follow its own guidelines, changed the cut-off date for applications, which gave "unfair advantage" to some companies over others. It said that the entire process "lacked transparency and was undertaken in an arbitrary, unfair and inequitable manner".

The auditor said that several companies deliberately suppressed facts, disclosed incomplete information, submitted fictitious documents and used fraudulent means to get licences and thereby access to spectrum.

Will companies lose licences?

The auditor said that units of Unitech Ltd, which received licences in 2008 and now operates services in a joint venture with Norway's Telenor, had not fulfilled eligibility conditions including required share capital.

Other firms which were ineligible according to the auditor include Loop Telecom, Videocon Telecommunications and S Tel Ltd. The auditor said that Swan Telecom, which has since been partly acquired by the UAE's Etisalat , was given licences even though a unit of No. 2 telecoms firm Reliance Communications held over 10% of equity, a violation of rules.

It is still to early to know whether any licences would be cancelled, but the pressure would be strong not to do so because operators have invested in networks and have subscribers. Any big crackdown could send a wrong signal to investors.

But the government could ask operators to compensate for the potential revenue loss as highlighted by the auditor and may impose fines for not meeting separate rollout obligations.

The auditor also named nine other operators, including market leaders Bharti Airtel , Reliance Comm and Vodafone , who were allotted spectrum beyond the contracted limit without paying any upfront charges, costing the government a potential $8 billion.

What does it mean for the telecom market?

If the government imposes heavy fines on new licensees singled out in the auditor's report, it would weaken them further. The newer operators are yet to make profit as they offer heavy discounts to grab subscribers, and any financial penalty would be a blow for them, forcing some to leave the market.

Some operators may also freeze network expansion until clarity emerges on the regulatory front, meaning slower growth for network equipment vendors and other service providers. In case licences are cancelled, it would lead to natural consolidation in the crowded 15-player market.

Will this affect FDI into India?

The country's mobile phone market is the world's fastest-growing and its nearly 700 million users trail only China, making it a must-invest market for any major global operator. But regulatory uncertainties have been a concern for some and could make foreign companies start to look more carefully where to invest.

Any penalty or adverse regulatory action could also weigh on companies such as Telenor and Etisalat, which were not part of their respective domestic ventures when the licences were distributed. Also, the controversy would make future investors more careful before they decide to invest in the market.

Vodafone, the single-biggest foreign investor of the nation, is fighting a $2.5 billion tax bill over its acquisition of a mobile firm in the country and has signalled frustration with the regulations.

Why did the CBI in 2009 raid the offices of the department of telecommunications (DoT)?

The DoT under Communications and IT Minister A Raja has long been facing accusations that the government issued telecom licences in 2008 to eight new operators at throwaway prices.

Later, two of these new licensees sold a chunk of their stake to foreign operators and made a neat profit, which accentuated the charges of enriching a select few at the cost of the exchequer.

Critics pointed out that had the licence or spectrum been auctioned to the players the government would have gained substantially and according to some estimates the gain would have been to the tune of Rs 60,000 crore. But these were issued to companies that had neither network, subscribers nor experience in the telecom business. After the CVC was dissatisfied with the DoT's explanation it finally turned the matter over to the CBI.

How did the new operators make a killing?

A pan India telecom licence (involving 22 circles) costs Rs 1,651 crore, therefore new licensees like Swan Telecom and Unitech Wireless paid this sum (Swan got licences for 13 circles so it paid Rs 1,537 crore) and later sold a part of their stake at an enterprise valuation of over $2 billion.

This is 700 per cent higher than what they invested. For instance, Swan let UAE-based Etisalat acquire 45 per cent in the company for around $900 million (approximately Rs 4,500 crore at Rs 50 to a USD) valuing the company at $2 billion. 

Similarly, Unitech Wireless let Norway-based Telenor acquire a majority stake of 67.25 per cent in it for Rs 6,120 crore, valuing the company at Rs 9,100 crore. The mind-boggling valuations accrued not because of the licence but the bundled spectrum, a scarce national resource that came with it. The logic was simple: Get a licence, the spectrum would come bundled with it, the company's valuation would increase, divest a part stake and earn super normal profits.

What led the government to not auction the spectrum?

According to the telecom policy, when a licence is allotted to an operator some start-up spectrum is bundled along with it. The policy does not have a provision for auctioning the spectrum.

Then what mistake did Raja or DoT make in not auctioning the spectrum?

Raja is right when he says that he upheld Trai's recommendation of not auctioning the 2G spectrum. However, he's wrong and confuses people by mixing auctioning of licence and spectrum.

The Trai and the telecom policy both had said that market forces should determine the licence fee. Obviously if licences are auctioned, the market price for spectrum is achieved and there's scope for government to realise higher values.

Why was it awarded only to eight operators?

In May 2007 when Raja replaced Dayanidhi Maran as Minister, DoT asked for Trai's recommendation on whether or not to continue with the policy of having unlimited telecom players in a circle. Globally there are a maximum of five operators in each circle as it promotes efficient use of the scarce spectrum.

Though the government accepted the Trai's recommendation that there should be no cap on the number of operators, seeing the deluge of applications the DoT put a temporary bar by not accepting applications after October 1, 2007 and issued licences only to those firms that had applied till September 25, 2007.

Source: Agencies


Politics of Tamil Nadu

From Wikipedia, the free encyclopedia

Dravidian parties have dominated state politics since 1967.One of the earliest regional parties was the South Indian Welfare Association, which was founded in 1916. It came to be known as the Justice Party after the name of its English-language daily, Justice.E.V. Ramasami, popularly known as "Periyar", renamed the party Dravidar Kazhagam in 1944. DK was a non-political party which demanded the establishment of an independent state called Dravida Nadu. However, due to the differences between its two leaders Periyar and C.N. Annadurai, the party was split. Annadurai left the party to form the Dravida Munnetra Kazhagam (DMK). The DMK decided to enter into politics in 1956.

In the 19th century, Western scholars proposed that Dravidian languages that dominates the south of India formed a different linguistic group to that of Indo-Aryan languages that are predominant in the north of the country. They also classified Indians into distinct Aryan and Dravidian races, it was supposed that the generally darker-skinned Dravidians constituted a distinct race. This concept has affected thinking in India about racial and regional differences and had an impact on aspects of Tamil nationalism, which has appropriated the claim that Dravidians are the earliest inhabitants of India, and the Aryan population were oppressive interlopers from whom Dravidians should liberate themselves. History has shown that Dravidian linguistic family predates Indo-aryan linguistic family in India, however both language groups have been influenced by the other during the course of three millennia.

Present chief minister M.Karunanidhi (centre) with ex-chief ministers C. N. Annadurai (left) andM. G. Ramachandran (right)

Re-organisation of Indian states according to linguistic and ethnic basis has moderated Tamil nationalism, especially the demand for separation from the Indian Union. The Anti-Hindi agitations in mid-1960s made the DMK more popular and more powerful political force in the state. The DMK routed the Indian National Congress party in the 1967 elections and took control of the state government, ending Congress's stronghold in Tamil Nadu. C.N. Annadurai became the DMK's first Chief Minister, and Muthuvel Karunanidhi took over as Chief Minister and party leader after Annadurai's death in 1969.Karunanidhi's leadership was soon challenged by M.G. Ramachandran, popularly known as MGR. In 1972, he split from DMK and formed the All India Anna Dravida Munnetra Kazhagam (AIADMK). He was the Chief Minister of the state from 1977 until his death in 1987. After the death of MGR, the party split again into two factions, one led by Janaki Ramachandran, wife of MGR, and the other led byJ. Jayalalithaa. After the defeat of AIADMK in 1989 assembly polls, both factions were merged and Jayalalithaa took control of the party. She was elected as the General Secretary of the unified AIADMK. There have been splits in both the DMK and the AIADMK, but since 1967 one of those two parties has held power in the state. In the State elections after M.G. Ramachandran's death, neither of the two parties could come back to power in consecutive assembly elections. Governments were formed by: DMK in 1989, AIADMK in 1991, DMK alliance in 1996, AIADMK alliance in 2001 and DMK alliance in 2006.

DMK has slowly moved from espousing backward classes to economic oriented politics. Its members wear branded clothes, mingle with business heads and talk about development growth. Nowadaya, DMK vote is mainly derived from urban areas

Starting from 1990s, caste based politics is on the rise in Tamil Nadu. Pattali Makkal Katchi (PMK) party deriving strength from vanniars,Viduthalai Chiruthaigal Katch (VCK) party based on Dalit votes and Puthiya Thamilagam based on another sect of Dalits have been gaining prominence in Tamil Nadu. These parties have been gaining modest electoral success and slowly eating into traditional vote banks of DMK and AIADMK. Recently an outfit supporting Kongu Vellala Gounders also joined this list, a caste decides electoral victories in West Tamil Nadu, with the launch of their own political party Kongunadu Munnetra Peravai (KMP) in February 2009.

Related

A Raja

2G spectrum

2G scam

Dravida Munnetra Kazhagam

Central Bureau of Investigation

Tamil Nadu

Timeline of articles

Number of sources covering this story

Raja's arrest does not affect credibility of PM, govt: Congress

‎26 minutes ago‎ - Times of India

Who is RK Chandolia?

‎4 hours ago‎ - NDTV.com

2G scam: Raja aides Chandolia, Behura also arrested

‎4 hours ago‎ - NDTV.com

2G: CBI questions A Raja for fourth time

‎7 hours ago‎ - Indian Express



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Anil Ambani profited the most from 2G scam

By Vox Purpli - YahooINEditors – November 18th, 2010
anil_1811_600x335

Many corporate houses booked windfall profits from the 2G spectrum scandal, it has now come to light.

The opposition continued to stall both houses of Parliament on Thursday, demanding a Joint Parliamentary Committee investigation into the scandal, but elsewhere, questions were being asked about businessmen who made money from ousted telecom minister A Raja's scandalous deals.

The CAG report tabled in Parliament earlier this week said Anil Dhirubhai Ambani Group benefited the most from improper allocation of licences. The Hindu reported:

The CAG has found that Mr. Ambani's companies were given undue advantage over other players in at least three ways: first, the fact that Swan Telecom (now Etisalat DB Telecom), one of the 2G beneficiaries, appeared to have been acting as a front company for ADAG's Reliance Telecom was ignored by the Department of Telecom; second, it got the spectrum before others in the queue; and third, Reliance Communications was favoured in the spectrum allocation while getting access to a dual technology licence for offering both CDMA and GSM services…

The CAG also pointed out that the e-mail address of the corporate as well as registered office of Swan Telecom Pvt. Ltd was shown as hari.nair@relianceada.com, and the same e-mail ID was also given for the correspondence address and the authorised contact person of the applicant company.

Meanwhile, pressure is mounting on Prime Minister Manmohan Singh to explain why he looked the other way when Raja was signing away the nation's wealth for a pittance. BJP leader L K Advani said the Supreme Court had, for the first time, pointed fingers at a prime minister, and it was high time Singh made a statement.

On television, Subramaniam Swamy, president of the Janata Party, said Singh was not corrupt but weak. Swamy has filed a case in the Supreme Court against Raja's deals. He spoke to reporters in front of the Supreme Court on Thursday, and asked why Singh had remained unresponsive to his plea for permission to proceed against Raja. He alleged the government was "embroidering the truth".

Gopikrishnan, whose hard work as a reporter led to the unearthing of the scandal, believes telecom licences issued illegally will eventually be cancelled. Chandan Mitra, editor of The Pioneer, praised Gopikrishnan and revealed how he had grown into a reporter with a formidable reputation for digging out hidden information.

I don't know how much pressure he came under and from which quarters. But I faced more pressure over these reports than anything else in my 27 years of journalism, of which nearly 20 have been spent in senior editorial positions. I am proud to have withstood them. But even more proud that I gave a dynamic young man from Kerala a break in the national media, a break he used to do the nation a sterling service. J Gopikrishnan has made history and The Pioneer basks in his achievement.

In an interview Mitra ran with his article, titled The Man Who Felled a King, Gopikrishnan reveals that a whistleblower within the telecom ministry helped him unravel the complexities of the scandal.

The Economic Times reported that the government would take action against five telecom companies that profited from the scandal. It quoted an official and said:

The five companies notably Unitech, S Tel, Loop Mobile, Datacom (Videocon) and Etisalat, are likely to attract heavy penalties for disclosing incomplete information and submitting fictitious documents and adopting other fraudulent means to get licenses, the official said, adding that no plans were afoot to cancel their licences.

Cancellation of licences retrospectively will penalise foreign operators who have bought stakes in these companies, and could send out wrong signals to investments from abroad, and also lead to complicated legal processes. It will also result in losses as some of these companies have invested significant amounts in rolling out operations, this official added.

In news that broke late afternoon on Thursday, the Telephone Regulatory Authority of India recommended the cancellation of 69 telecom licences, and Videocon, Aircel and Uninor are among those who could lose their licences.

Related:
The role of business in governmental corruption (Editorial in DNA)

http://in.yfittopostblog.com/2010/11/18/anil-ambani-profited-the-most-from-2g-scam/

India Inc write to politicians over 'governance deficit'

On Tuesday 18 January 2011, 1:00 PM

A group of prominent personalities, including industrialists Azim Premji, Keshub Mahindra and Deepak Parekh, have expressed concern over a series of scams leading to "governance deficit". They asked the government to deal with burning issues like corruption urgently.

In an 'open letter' addressed to the leaders, they said: "We are alarmed at the widespread governance deficit almost in every sphere of national activity covering government, business and institutions. Widespread discretionary decision-making have been routinely subjected to extraneous influences.

Asking politicians to rise above party politics, the letter said "time is overdue for India's elected representatives to distinguish between dissent and disruption while the era of coalitions, tolerance of compromise still remains a challenge."

"Elected legislators and leaders must acknowledged and demonstrate their collective role and responsibility in restoring the sense of purpose and confidence in national institutions."

"The topmost responsibility of those at the helm of the nation's affairs must be to urgently restore the self-confidence and self-belief of Indians in themselves and in the State as well as in Indian business and public institutions which touch the lives of every Indian."

The signatories to the letter also include Jamshyd Godrej, Justice Sam Variava, Prof M Narasimham, Yezdi Malegam, Anu Aga, Dr A Vaidyanathan, Bimal Jalan, N Vaghul, Nachiket Mor, Justice B N Srikrishna and Dr Ashok Ganguly.

The letter comes against the backdrop of 2G, CWG and Adarsh scams, and also leakage of tapes involving corporate lobbyist Niira Radia's conversations with various personalities, including industrialist Ratan Tata, politicians and journalists.

Deepak Parekh had earlier echoed Tata in voicing concern over the leakage of the tapes stating such incidents were only generating negativity, which threatened to derail India's growth story.

"In the last few months, the country has witnessed eruption of a number of egregious events. There are, at present, several loud and outraged voices, in the public domain, clamouring on these issues which have deeply hurt the nation," the letter said.

Amid all the scams, the letter further said, "The judiciary is a source of some reassurance but creation of genuinely independent and constitutionally constituted regulatory bodies, manned by persons who are judicially trained in the concerned field, would be one of the first and important steps to restore public confidence."

Terming corruption as "possibly, the biggest issue corroding the fabric of our nation" it said "this malaise needs to be tackled with a sense of urgency, determination and on a war footing".

"Dealing determinedly with governance and aggressively against corruption, while openly debating these issues by elected legislators is the only means left to reassure our citizens," it said.

Amongst several urgent steps needed, this is possibly the most critical one that the nation can immediately initiate in order to reassure its citizens that corruption will be most severely dealt with, both at the branch and at the root level, the letter added.

The letter further said the benefits of growth are not reaching the poor and marginalised sections adequately due to impediments to economic development.

"This is because of some critical issues like environmental concerns and differences in perspectives between central and state governments," it said.


02/02/2011

Breaking News: CBI arrests A Raja

New Delhi: Former Telecom Minister A Raja was today arrested along with his two former associates in connection with the 2G spectrum scam. Reacting to the development, DMK said that this will not affect its ties with the Congress party.

2G scam: CBI questions A Raja for fourth time

Raja arrived at the CBI headquarters this morning, a day after his brother A K Perumal was questioned by the CBI about alleged funding of some front organisations owned by Telecom companies which had been allocated spectrum from October 2007 to January 2008, official sources said.

Raja, his former personal secretary R K Chandolia and former Telecom Secretary Siddartha Behura were arrested for allegedly abusing their official position and manipulating the tendering procedures to benefit certain telecom companies in getting the spectrum.

The arrest of 47-year-old Raja, who has been questioned four times by the agency, comes over two months after he was forced to resign in the wake of the spectrum controversy.

Raja, who was questioned earlier on December 24 and 25 last year and January 31, was called to the CBI office this morning and quizzed before being arrested, the sources said.

The DMK MP had been confronted with some questions and documents recovered from the computers seized during searches conducted by the investigation agency earlier at his premises, the sources said.

He was also asked about his conversations with corporate lobbyist Niira Radia and the reasons for advancing the cut-off date of applying for license for spectrum allocation in 2007 by a week.

Raja was forced to resign on November 14 last year in the wake of the CAG report which held that the spectrum allocation at undervalued prices resulted in a notional loss of Rs 1.76 lakh crore to the state exchequer.

He got the telecom portfolio on May 18, 2007 and was re-elected as a Member of the 15th Lok Sabha and continued as Telecom Minister from May 31, 2009, till November 14, 2010.

The Supreme Court has asked CBI and Enforcement Directorate to submit status reports on their investigations into the 2G spectrum case to it by February 10 when the case will come up for further hearing.

In its FIR, CBI mentioned the loss in spectrum allocation as Rs 22,000 crore based on CVC findings which had referred the case to it.

CBI has also questioned former Telecom Regulatory Authority of India (TRAI) chief Pradip Baijal, a 1966 batch IAS officer of Madhya Pradesh cadre, and former Telecom Secretary D S Mathur in connection with the case.

2G scam: CBI questions A Raja for fourth time

Raja arrest an instance of law taking its own course: Cong

Congress today said the arrest of former Telecom Minister A Raja in the 2G spectrum allocation scam was a case of law taking its own course. "Congress had said earlier also that all such cases should be investigated and enquired properly and law will take its own course," AICC General Secretary Janardhan Dwivedi told reporters.

He dismissed as a "silly judgement" a question whether the arrest of a former Minister in the UPA government showed that the dispensation was corrupt. "I am not bound to answer such silly judgement," he said. In reply to a question, he said the development would not have any bearing on the relations between the Congress and DMK, to which Raja belongs.

Raja's arrest too little too late: BJP

BJP today dubbed the arrest of former Telecom Minister A Raja as "too little too late" and demanded that others involved in the 2G spectrum scam should also be brought to book.

"The arrest is too little too late. It is very unfair to say that Raja alone had gulped Rs 1.76 lakh crore. Who are the rest of the people? BJP categorically wants to know that," BJP spokesperson Rajiv Pratap Rudy said. He said Raja's arrest was just beginning of an exercise.

"Please don't give credit to the government for the arrest. Government has to answer many questions before this finally comes to an end," he said.

Source: PTI

Chronology of developments related to 2G spectrum case

Following is the chronology of some developments related to the 2G spectrum case:

May 16, 2007: A. Raja appointed as Minister for Telecommunications for a second term.

October 25, 2007: The Centre rules out the possibility of auctioning 2G (second generation) spectrum for mobile services.

September -- October 2008: 2G spectrum licences given to telecom firms.

November 15, 2008: The Central Vigilance Commission in its initial investigation report finds lapses and recommends action against certain Telecom Ministry officials.

October 21, 2009: CBI registers a case to probe 2G Spectrum case.

October 22, 2009: The CBI searches offices of the Department of Telecom in connection with the case.

October 17, 2010: Comptroller and Auditor General of India (CAG) indicts the DoT for multiple violations of policy in handing out second generation mobile phone licences.

November, 2010: Opposition rocks Parliament demanding ouster of Telecom Minister A. Raja.

November 14, 2010: Raja resigns.

November 15, 2010: HRD Minister Kapil Sibal gets additional charge of the Telecom Ministry.

November 2010: Parliament stalemate over the Opposition demand for a JPC probe into 2G spectrum allocation.

December 13, 2010 : DoT notifies the terms of reference of retired Supreme Court Justice Shivraj. V. Patil committee to look into the spectrum allocation procedures and policies. It is asked to submit its report to the Telecom Minister.

December 24 and 25, 2010: Raja questioned by CBI

January 31, 2011: Raja interrogated by CBI for third time

The one-man Patil Committee submits its report

February 2, 2011 : Raja, former Telecom Secretary Siddartha Behura and Raja's former personal secretary R. K. Chandolia arrested by the CBI in connection with 2G spectrum case.

Source: PTI

Communications in India

From Wikipedia, the free encyclopedia

India is the world's fastest growing Wireless market,[1][2][3] with 729.57 Million mobile phone subscribers as of November, 2010.[4] It is also the second largest telecommunication network in the world in terms of number of wireless connections after China.[5] The Indian Mobile subscriber base has increased in size by a factor of more than one hundred since 2001 when the number of subscribers in the country was approximately 5 million[6] to 729.57 Million by Nov 2010.[4] See List of countries by number of mobile phones in use.

As the fastest growing telecommunications industry in the world, it is projected that India will have 1.159 billion mobile subscribers by 2013.[7][8][9][10] Furthermore, projections by several leading global consultancies indicate that the total number of subscribers in India will exceed the total subscriber count in the China by 2013.[7][8] The industry is expected to reach a size of Indian Rupee ₹344,921 crore (US$74.85 billion) by 2012 at a growth rate of over 26 per cent, and generate employment opportunities for about 10 million people during the same period.[11]According to analysts, the sector would create direct employment for 2.8 million people and for 7 million indirectly.[11] In 2008-09 the overall telecom equipments revenue in India stood at Indian Rupee ₹136,833 crore (US$29.69 billion) during the fiscal, as against Indian Rupee ₹115,382 crore (US$25.04 billion) a year before.[12]

Contents

 [hide]

[edit]Modern growth

A large population, low telephony penetration levels, and a rise in consumers' income and spending owing to strong economic growth have helped make India the fastest-growing telecom market in the world. The first operator is the state-owned incumbent BSNL. BSNL was created by corporatization of the erstwhile Indian Telecommunication Service, a government unit responsible for provision of telephony services. Subsequently, after the telecommunication policies were revised to allow private operators, companies such as VodafoneBharti AirtelTata IndicomIdea CellularAircel and Loop Mobile have entered the space. see mobile operators in India. In 2008-09, rural India outpaced urban India in mobile growth rate. Bharti Airtel now is the largest telecom company in India.

India's mobile phone market is the fastest growing in the world, with companies adding some 18.98 million new customers in Oct 2010.

The total number of telephones in the country crossed the 742.12 million mark on Oct 31st, 2010. The overall tele-density has increased to 62.31% by Oct 31st 2010.[4] In the wireless segment, 18.98 million subscribers were added in Oct 2010. The total wireless subscribers (GSM, CDMA & WLL (F)) base is more than 706 million now. The wireline segment subscriber base stood at 35.43 million with a decline of 0.14 million as of Oct 31st 2010.

[edit]History

Telecom in the real sense means transfer of information between two distant points in space. The popular meaning of telecom always involveselectrical signals and nowadays people exclude postal or any other raw telecommunication methods from its meaning. Therefore, the history of Indian telecom can be started with the introduction of telegraph.

[edit]Introduction of telegraph

The postal and telecom sectors had a slow and uneasy start in India. In 1850, the first experimental electric telegraph Line was started between Kolkata and Diamond Harbor. In 1851, it was opened for the British East India Company. The Posts and Telegraphs department occupied a small corner of the Public Works Department,[13] at that time. Construction of 4,000 miles (6,400 km) of telegraph lines connecting Kolkata (Calcutta) and Peshawar in the north along with AgraMumbai (Bombay) through Sindwa Ghats, and Chennai in the south, as well as Ootacamund and Bangalore was started in November 1853. Dr. William O'Shaughnessy, who pioneered telegraph andtelephone in India, belonged to the Public Works Department. He worked towards the development of telecom throughout this period. A separate department was opened in 1854 when telegraph facilities were opened to the public.

[edit]Introduction of the telephone

In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-Indian Telephone Company Ltd. approached the Government of India to establish telephone exchanges in India. The permission was refused on the grounds that the establishment of telephones was a Government monopoly and that the Government itself would undertake the work. In 1881, the Government later reversed its earlier decision and a licence was granted to the Oriental Telephone Company Limited of England for opening telephone exchanges atCalcuttaBombayMadras and Ahmedabad and the first formal telephone service was established in the country.[14] 28 January 1882, is aRed Letter Day in the history of telephone in India. On this day Major E. Baring, Member of the Governor General of India's Council declared open the Telephone Exchanges in Calcutta, Bombay and Madras. The exchange in Calcutta named "Central Exchange" was opened at third floor of the building at 7, Council House Street. The Central Telephone Exchange had 93 number of subscribers. Bombay also witnessed the opening of Telephone Exchange in 1882.

[edit]Further developments

A Mobile Phone Tower.

While all the major cities and towns in the country were linked with telephones during the British period, the total number of telephones in 1948 was only around 80,000. Even after independence, growth was extremely slow. The telephone was a status symbol rather than being an instrument of utility. The number of telephones grew leisurely to 980,000 in 1971, 2.15 million in 1981 and 5.07 million in 1991, the year economic reforms were initiated in the country.

While certain innovative steps were taken from time to time, as for example introduction of the telex service in Mumbai in 1953 and commissioning of the first [subscriber trunk dialing] route between Delhi and Kanpur and between Lucknow and Kanpur in 1960, the first waves of change were set going by Sam Pitroda in the eighties.[15] He brought in a whiff of fresh air. The real transformation in scenario came with the announcement of the National Telecom Policy in 1994.[16]

[edit]Indian telecom sector: recent policies

  • All the villages shall be covered by telecom facility by the end of 2002.
  • The Communication Convergence Bill 2001introduced in the Parliament on August 31, 2001 is presently before the Standing Committee of Parliament on Telecom and IT.
  • National Long Distance Service (NLD) is opened for unrestricted entry.
  • The International Long Distance Services (ILDS) have been opened to competition.
  • The basic services are open to competition.
  • In addition to the existing three, fourth cellular operator, one each in four metros and thirteen circles, has been permitted. The cellular operators have been permitted to provide all types of mobile services including voice and non-voice messages, data services and Public Call Office PCOs utilizing any type of network equipment, including circuit and/or package switches that meet certain required standards.
  • Policies allowing private participation have been announced as per the New Telecom Policy (NTP), 1999 in several new services, which include Global Mobile Personal Communication by Satellite (GMPCS) Service, digital Public Mobile Radio Trunked Service (PMRTS), Voice Mail/ Audiotex/ Unified Messaging Service.
  • Wireless in Local Loop (WLL) has been introduced for providing telephone connections in urban, semi-urban and rural areas promptly.
  • Two telecom PSUs, VSNL and HTL have been disinvested.
  • Steps are being taken to fulfill Universal Service Obligation (USO), its funding and administration.
  • A decision to permit Community Phone Service has been announced.
  • Multiple Fixed Service Providers (FSPs) licensing guidelines were announced.
  • Internet Service Providers (ISPs) have been allowed to set up International Internet Gateways, both Satellite and Landing stations for submarine optical fiber cables.
  • Two categories of infrastructure providers have been allowed to provide end-to-end bandwidth and dark fiber, right of way, towers, duct space etc.
  • Guidelines have been issued by the Government to open up Internet telephony (IP).

[edit]Emergence as a major player

In 1975, the Department of Telecom (DoT) was separated from Indian Post & Telecommunication Accounts and Finance Service. DoT was responsible for telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. In 1990s the telecom sector was opened up by the Government for private investment as a part of Liberalisation-Privatization-Globalization policy. Therefore, it became necessary to separate the Government's policy wing from its operations wing. The Government of India corporatised the operations wing of DoT on 1 October 2000 and named it as Bharat Sanchar Nigam Limited (BSNL). Many private operators, such as Reliance CommunicationsTata IndicomVodafoneLoop MobileAirtel,Idea etc., successfully entered the high potential Indian telecom market.

[edit]Privatization of telcommunications in India

The Indian government was composed of many factions (parties) which had different ideologies. Some of them were willing to throw open the market to foreign players (the centrists) and others wanted the government to regulate infrastructure and restrict the involvement of foreign players. Due to this political background it was very difficult to bring about liberalization in telecommunications. When a bill was in parliament a majority vote had to be passed, and such a majority was difficult to obtain, given to the number of parties having different ideologies.

Liberalization started in 1981 when Prime Minister Indira Gandhi signed contracts with Alcatel CIT of France to merge with the state owned Telecom Company (ITI), in an effort to set up 5,000,000 lines per year. But soon the policy was let down because of political opposition. She invited Sam Pitroda a US based Non-resident Indian NRI to set up a Center for Development of Telematics(C-DOT), however the plan failed due to political reasons. During this period, after the assassination of Indira Gandhi, under the leadership of Rajiv Gandhi, many public sector organizations were set up like the Department of Telecommunications (DoT) , VSNL and MTNL. Many technological developments took place in this regime but still foreign players were not allowed to participate in the telecommunications business.[17]

The demand for telephones was ever increasing. It was during this period that the Narsimha Rao-led government introduced the national telecommunications policy [NTP] in 1994 which brought changes in the following areas: ownership, service and regulation of telecommunications infrastructure. They were also successful in establishing joint ventures between state owned telecom companies and international players. But still complete ownership of facilities was restricted only to the government owned organizations. Foreign firms were eligible to 49% of the total stake. The multi-nationals were just involved in technology transfer, and not policy making.[17]

During this period, the World Bank and ITU had advised the Indian Government to liberalize long distance services in order to release the monopoly of the state owned DoT and VSNL; and to enable competition in the long distance carrier business which would help reduce tariff's and better the economy of the country. The Rao run government instead liberalized the local services, taking the opposite political parties into confidence and assuring foreign involvement in the long distance business after 5 years. The country was divided into 20 telecommunication circles for basic telephony and 18 circles for mobile services. These circles were divided into category A, B and C depending on the value of the revenue in each circle. The government threw open the bids to one private company per circle along with government owned DoT per circle. For cellular service two service providers were allowed per circle and a 15 years license was given to each provider. During all these improvements, the government did face oppositions from ITI, DoT, MTNL, VSNL and other labor unions, but they managed to keep away from all the hurdles.[17]

After 1995 the government set up TRAI (Telecom Regulatory Authority of India) which reduced the interference of Government in deciding tariffs and policy making. The DoT opposed this. The political powers changed in 1999 and the new government under the leadership of Atal Bihari Vajpayee was more pro-reforms and introduced better liberalization policies. They split DoT in two- one policy maker and the other service provider (DTS) which was later renamed as BSNL. The proposal of raising the stake of foreign investors from 49% to 74% was rejected by the opposite political party and leftist thinkers. Domestic business groups wanted the government to privatize VSNL. Finally in April 2002, the government decided to cut its stake of 53% to 26% in VSNL and to throw it open for sale to private enterprises. TATA finally took 25% stake in VSNL.[17]

This was a gateway to many foreign investors to get entry into the Indian Telecom Markets. After March 2000, the government became more liberal in making policies and issuing licenses to private operators. The government further reduced license fees for cellular service providers and increased the allowable stake to 74% for foreign companies. Because of all these factors, the service fees finally reduced and the call costs were cut greatly enabling every common middle class family in India to afford a cell phone. Nearly 32 million handsets were sold in India. The data reveals the real potential for growth of the Indian mobile market.[18]

In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million, which represented a nearly 50% growth when compared with previous year.[19] As the unbranded Chinese cell phones which do not have International Mobile Equipment Identity(IMEI) numbers pose a serious security risk to the country, Mobile network operators therefore planned to suspend the usage of around 30 million mobile phones (about 8 % of all mobiles in the country) by 30 April.[20] 5–6 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 millions. However, after a number of proactive initiatives were taken by regulators and licensors, the total number of mobile subscribers has increased greatly to 706.69 million subscribers as of Oct 31st 2010.[4][21]

India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access)technologies in the mobile sector. In addition to landline and mobile phones, some of the companies also provide the WLL service. The mobile tariffs in India have also become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$0.15 only. In 2005 alone additions increased to around 2 million per month in the year 2003-04 and 2004-05.[citation needed]

In June 2009, the Government of India banned the import of several mobile phones manufactured in China citing concerns over quality and the lack of IMEI's which make it difficult for authorities in India to track the sale and use of such phones.[22] In April 2010, the Government was also reported to be blocking Indian service providers from purchasing Chinese mobile technology citing concerns that Chinese hackers could compromise the Indian telecommunications network during times of national emergency. A series of attacks on Indian government websitesand computer networks by suspected Chinese hackers has also made Indian regulators suspicious with regards to the import of potentially sensitive equipment from China. The companies reported to be affected by this are Huawei Technologies and ZTE.[23][24][25]

[edit]Telecommunications Regulatory Environment in India

LIRNEasia's Telecommunications Regulatory Environment (TRE) index, which summarizes stakeholders' perception on certain TRE dimensions, provides insight into how conducive the environment is for further development and progress. The most recent survey was conducted in July 2008 in eight Asian countries, including Bangladesh, India, Indonesia, Sri Lanka, Maldives, Pakistan, Thailand, and the Philippines. The tool measured seven dimensions: i) market entry; ii) access to scarce resources; iii) interconnection; iv) tariff regulation; v) anti-competitive practices; and vi) universal services; vii) quality of service, for the fixed, mobile and broadband sectors.

The results for India, point out to the fact that the stakeholders perceive the TRE to be most conducive for the mobile sector followed by fixed and then broadband. Other than for Access to Scarce Resources the fixed sector lags behind the mobile sector. The fixed and mobile sectors have the highest scores for Tariff Regulation. Market entry also scores well for the mobile sector as competition is well entrenched with most of the circles with 4-5 mobile service providers. The broadband sector has the lowest score in the aggregate. The low penetration of broadband of mere 3.87 against the policy objective of 9 million at then end of 2007 clearly indicates that the regulatory environment is not very conducive.[26]

[edit]Revenue and growth

The total revenue in the telecom service sector was Indian Rupee ₹86,720 crore (US$18.8 billion) in 2005-06 as against Indian Rupee ₹71,674 crore (US$15.6 billion) in 2004-2005, registering a growth of 21%. The total investment in the telecom services sector reached Indian Rupee ₹200,660 crore (US$43.5 billion) in 2005-06, up from Indian Rupee ₹178,831 crore (US$38.8 billion) in the previous fiscal.[27]

Telecommunication is the lifeline of the rapidly growing Information Technology industry. Internet subscriber base has risen to 100 million in 2010.[28] Out of this 10.52 million were broadband connections.[4] More than a billion people use the internet globally.

Under the Bharat Nirman Programme, the Government of India will ensure that 66,822 revenue villages in the country, which have not yet been provided with a Village Public Telephone (VPT), will be connected. However doubts have been raised about what it would mean for the poor in the country.[29]

It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of the opportunities can be gauged from the fact that there were 3.7 million Public Call Offices in December 2005[30] up from 2.3 million in December 2004.

The value added services (VAS) market within the mobile industry in India has the potential to grow from US$500 million in 2006 to a whopping US$10 billion by 2009.[31]

[edit]Telephone

On landlines, intra-circle calls are considered local calls while inter-circle are considered long distance calls. Currently Government is working to integrate the whole country in one telecom circle. For long distance calls, the area code prefixed with a zero is dialed first which is then followed by the number (i.e. To call Delhi, 011 would be dialed first followed by the phone number). For international calls, "00" must be dialed first followed by the country codearea code and local phone number. The country code for India is 91.

Telephone Subscribers (Wireless and Landline): 742.12 million (Oct 2010) [4]

Land Lines: 35.43 million (Oct 2010)[4]

Cell phones: 706.69 million (Oct 2010) [4]

Yearly Cell phone Addition: 218.29 million (Oct 2009-10)[4]

Monthly Cell phone Addition: 18.98 million (Oct 2010) [4]

Teledensity: 62.51 % (Oct 2010) [4]

Projected Teledensity: 1 billion, 84% of population by 2012.[32]

[edit]Mobile telephones

With a subscriber base of more than 680 million,[4] the Mobile telecommunications system in India is the second largest in the world and it was thrown open to private players in the 1990s. The country is divided into multiple zones, called circles (roughly along state boundaries). Government and several private players run local and long distance telephone services. Competition has caused prices to drop and calls across India are one of the cheapest in the world.[33] The rates are supposed to go down further with new measures to be taken by the Information Ministry.[34] In September 2004, the number of mobile phone connections crossed the number of fixed-line connections and presently dwarfs the wireline segment by a ratio of around 20:1.[4] The mobile subscriber base has grown by a factor of over a hundred and thirty, from 5 million subscribers in 2001 to over 680 million subscribers as of Sep 2010 [4] (a period of less than 9 years) . India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The dominant players areAirtelReliance InfocommVodafoneIdea cellular and BSNL/MTNL. There are many smaller players, with operations in only a few states. International roaming agreements exist between most operators and many foreign carriers.

India is divided into 23 telecom circles. They are listed below:[35]

The following table gives details regarding the subscriber base of each Mobile Service Provider in India as of 31 Oct 2010

Operator↓ Subscriber base[4]↓ Market Share [4]↓
Bharti Airtel 146,293,078 21.34%
Reliance Communications 119,351,438 17.37%
Vodafone 118,038,438 17.08%
BSNL 80,739,935 11.31%
Tata Teleservices 80,817,298 11.47%
Idea 76,023,551 10.84%
Aircel 47,519,629 6.64%
Unitech 13,748,300 1.05%
Loop 3,009,445 0.45%
Sistema 7,121,765 0.86%
MTNL 5,342,039 0.81%
Videocon 5,616,152 0.43%
Stel 1,867,060 0.22%
Etisalat 70,829 0.005%
HFCL Infotel 1,132,477 0.13%
All India 706,691,164 100%

A list of ten states (including the metros Mumbai, Kolkata and Chennai in their respective states) with the largest subscriber base as of Oct 31st 2010 is given below

State↓ Subscriber base [4]↓ Population (01/08/2010) [36]↓ Mobile phones per 1000 population↓
Uttar Pradesh 92,867,835 199,415,992 427
Maharashtra 84,543,727 110,351,688 707
Tamil Nadu 63,671,528 67,773,611 881
Andhra Pradesh 54,000,379 84,241,069 600
West Bengal 51,901,967 90,524,849 520
Bihar 46,311,291 97,560,027 430
Karnataka 43,802,688 58,969,294 709
Gujarat 40,158,662 58,388,625 618
Rajasthan 38,649,784 67,449,102 535
Madhya Pradesh 38,295,896 72,362,313 489
India 706,691,164 1,188,783,351 580

[edit]Landlines

Until recently, only the Government-owned BSNL and MTNL were allowed to provide landline phone services through copper wire in India withMTNL operating in Delhi and Mumbai and BSNL servicing all other areas of the country. Private operators such as Touchtel and Tata Teleservices have entered the market however, the primary focus of their business is on the mobile-phone sector.[citation needed] Due to the rapid growth of the cellular phone industry in India, landlines are facing stiff competition from cellular operators. This has forced landline service providers to become more efficient and improve their quality of service. Landline connections are now also available on demand, even in high density urban areas. The breakup of wireline subscriber base in India as of September 2009 is given below[37]

Operator Subscriber base
BSNL 28,446,969
MTNL 3,514,454
Bharti Airtel 2,928,254
Reliance Communications 1,152,237
Tata Teleservices 1,003,261
HFCL Infotel 165,978
Teleservices Ltd 95,181
All India 37,306,334

The list of eight states (including the metros Mumbai, Kolkata and Chennai in their respective states) with largest subscriber base as of September 2009 is given below[37]

State↓ Subscriber base↓
Maharashtra 5,996,912
Tamil Nadu 3,620,729
Kerala 3,534,211
Uttar Pradesh 2,803,049
Karnataka 2,751,296
Delhi 2,632,225
West Bengal 2,490,253
Andhra Pradesh 2,477,755

[edit]Internet

India has the world's third largest Internet users with over 100 million users (of whom 40 million use the internet via mobile phones) as of December 2010.[38] Internet penetration in India is one of the lowest in the world which is 8.4% of the population, compared to other nations like United StatesJapan or South Korea where internet penetration is significantly higher than in India.[39]

The number of broadband connections in India has seen a continuous growth since the beginning of 2006. At the end of Oct 2010, total broadband Internet users in the country have reached 10.52 million. See List of countries by number of broadband Internet users

Broadband in India is more expensive as compared to Western Europe/United Kingdom and United States.[40]

After economic liberalization in 1992, many private ISPs have entered the market, many with their own local loop and gateway infrastructures. The telecom services market is regulated by the TRAI and the DoT, which has been known to impose censorship on some websites.

[edit]Low Speed Broadband (256 kbit/s - 2 mbit/s)

The current definition of Broadband in India is speeds of 256 kbit/s. TRAI on July 2009 has recommended raising this limit to 2 Mbit/s.[41]

As of October 2010, India has 10.52 million broadband users, constituting 6.0% of the population.[4] India ranks one of the lowest provider of broadband speed as compared countries such as JapanSouth Korea and France.[9][40]

Because of the increase in Broadband penetration and the quality of service steadily improving, many non-resident Indians are now enjoying the ability to communicate with family in India from around the world. However, many consumers complain that ISPs still fail to provide the advertised speeds - some even failing to meet the 256 kbit/s standards.

[edit]High Speed Broadband (over 2 Mbit/s)

  • Airtel has launched plans up to 16 Mbit/s on ADSL2+ enabled lines and is piloting new 30 Mbit/s and 50 Mbit/s plans in limited areas.[42]
  • Beam Telecom offers plans up to 6 Mbit/s for home users and has 20 Mbit/s plans available for power users in only Hyderabad city.[43]
  • BSNL offers ADSL up to 8 Mbit/s in many cities.It also started offering FTTH speeds ranging from 256Kbps to 100Mbps.[44]
  • Hayai Broadband will offer FTTH services up to 100 Mbit/s, with an Internal network speed of 1 Gbit/s.
  • Honesty Net Solutions offers Broadband over Cable at up to 4 Mbit/s.
  • MTNL offers VDSL at speeds up to 20 Mbit/s in selected areas [45]
  • Reliance Communications offers 10 Mbit/s and 20 Mbit/s broadband internet services in selected areas.[46]
  • Tata Indicom offers 10 Mbit/s, 20 Mbit/s and 100 Mbit/s options under the "Lightning Plus" tariffs structure/[47]
  • Tikona Digital Networks Wireless Broadband service which is powered by OFDM and MIMO 4th Generation(4G) technologies with 2 Mbit/s [48]
  • O-Zone Networks Private Limited Pan-India public Wi-Fi hotspot provider giving wireless broadband up to 2 Mb/s.[49]

The main problem consumers face with High Speed Broadband in India is that they are frequently expensive and/or they have limited amounts of data transfer included in the plan.

[edit]Statistics

Internet Service Providers (ISPs) & Hosts: 86,571 (2004) Source: CIA World FactBook

Country code (Top-level domain): IN

[edit]Broadcasting

AIR Radio Tower

Radio broadcast stations: AM 153, FM 91, shortwave 68 (1998)

Radios: 116 million (1997)

Television terrestrial broadcast stations: 562 (of which 82 stations have 1 kW or greater power and 480 stations have less than 1 kW of power) (1997)

Televisions: 110 million (2006)

In India, only the government owned Doordarshan (Door = Distant = Tele, Darshan = Vision) is allowed to broadcast terrestrial television signals. It initially had one major National channel (DD National) and a Metro channel in some of the larger cities (also known as DD Metro).

Satellite/Cable television took off during the first Gulf War with CNN. There are no regulations against ownership of satellite dish antennas, or operation of cable television systems, which led to an explosion of viewership and channels, led by the Star TV group and Zee TV. Initially restricted to music and entertainment channels, viewership grew, giving rise to several channels in regional languages and many in the national language, Hindi. The main news channels available were CNN and BBC World. In the late 1990s, many current affairs and news channels sprouted, becoming immensely popular because of the alternative viewpoint they offered compared to Doordarshan. Some of the notable ones are Aaj Tak (meansTill Today, run by the India Today group) and STAR NewsCNN-IBNTimes Now, initially run by the NDTV group and their lead anchor,Prannoy Roy (NDTV now has its own channels, NDTV 24x7, NDTV Profit, NDTV India and NDTV Imagine).New Delhi TeleVision.

Here is a reasonably comprehensive List of Indian television stations.

[edit]Next generation networks

In the Next Generation Networksmultiple access networks can connect customers to a core network based on IP technology. These access networks include fibre optics or coaxial cable networks connected to fixed locations or customers connected through wi-fi as well as to 3G networks connected to mobile users. As a result, in the future, it would be impossible to identify whether the next generation network is a fixed or mobile network and the wireless access broadband would be used both for fixed and mobile services. It would then be futile to differentiate between fixed and mobile networks – both fixed and mobile users will access services through a single core network.

Indian telecom networks are not so intensive as developed country's telecom networks and India's teledensity is low only in rural areas. 670,000 route kilometers (419,000 miles) of optical fibres has been laid in India by the major operators, even in remote areas and the process continues. BSNL alone, has laid optical fibre to 30,000 Telephone Exchanges out of their 36 Exchanges. Keeping in mind the viability of providing services in rural areas, an attractive solution appears to be one which offers multiple service facility at low costs. A rural network based on the extensive optical fibre network, using Internet Protocol and offering a variety of services and the availability of open platforms for service development, viz. the Next Generation Network, appears to be an attractive proposition. Fibre network can be easily converted to Next Generation network and then used for delivering multiple services at cheap cost.

[edit]Mobile Number Portability (MNP)

TRAI announced the rules and regulations to be followed for the Mobile Number Portability in their draft release on 23 September 2009. Mobile Number Portability (MNP) allows users to retain their numbers, while shifting to a different service provider provided they follow the guidelines set by TRAI. Once a customer changes his/her service provider & retaining the same mobile number they are expected to hold theile number with a given provider for at least 90 days, before they decide to move to another service provider. This restriction is set in place to keep a check on exploitation of MNP services provided by the service providers.[50]

As per news reports, Government of India decided to implement MNP from December 31, 2009 in Metros & category 'A' service areas and by March 20, 2010 in rest of the country.

It has been postponed to March 31, 2010 in Metros & category 'A' service areas. However, time and time again, lobbying by the state-run firms, BSNL and MTNL has resulted in innumerable delays in the implementation of Mobile Number portability. The latest reports suggest BSNL and MTNL are finally ready to implement the Mobile Number Portability by October 31, 2010.[51]

A press release by the Department of Telecommunications on 30 June 2010 said "Keeping the complexity and enormity of the testing involved before MNP is implemented and keeping in view the present status of implementation by various operators, it has now been decided to extend the time line for implementation of MNP to 31st October 2010."[52]

The latest official report is that Mobile Number Portability will be phased in slowly, starting with Haryana which will have MNP on or soon after November 1, 2010.[53]

A news report on 25 November 2010 said Mobile Number Portability (MNP) was finally launched in Haryana. The MNP service inaugurate by the Union Minister of Communications & IT Mr. Kapil Sibal by making the inaugural call to Shri Bhupindrer Singh Hooda, the Chief Minister of Haryana from a ported mobile number in function held at Rohtak city.[54] Another news report said it will be implemented across India on January 20, 2011. Even as DoT has recommended a porting fee of Rs. 19, some operators such as Idea Cellular may consider waiving off the porting charges.[55]

[edit]International

[edit]Submarine cables

  • LOCOM linking Chennai to PenangMalaysia
  • India-UAEcable linking Mumbai to Al Fujayrah, UAE.
  • SEA-ME-WE 2 (South East Asia-Middle East-Western Europe 2)
  • SEA-ME-WE 3 (South East Asia-Middle East-Western Europe 3) - Landing sites at Cochin and Mumbai. Capacity of 960 Gbit/s.
  • SEA-ME-WE 4 (South East Asia-Middle East-Western Europe 4) - Landing sites at Mumbai and Chennai. Capacity of 1.28 Tbit/s.
  • Fiber-Optic Link Around the Globe (FLAG-FEA) with a landing site at Mumbai (2000). Initial design capacity 10 Gbit/s, upgraded in 2002 to 80 Gbit/s, upgraded to over 1 Tbit/s (2005).
  • TIISCS (Tata Indicom India-Singapore Cable System), also known as TIC (Tata Indicom Cable), Chennai to Singapore. Capacity of 5.12 Tbit/s.
  • i2i - Chennai to Singapore. Capacity of 8.4 Tbit/s.
  • SEACOM From Mumbai to the Mediterranean, via South Africa. It currently joins with SEA-ME-WE 4 off the west coast of Spain to carry traffic onward to London (2009). Capacity of 1.28 Tbit/s.
  • I-ME-WE (India-Middle East-Western Europe) with two landing sites at Mumbai (2009). Capacity of 3.84 Tbit/s.
  • EIG (Europe-India Gateway), landing at Mumbai (due Q2 2010).
  • MENA (Middle East North Africa).
  • TGN-Eurasia (Announced) Landing at Mumbai (due 2010?), Capacity of 1.28 Tbit/s
  • TGN-Gulf (Announced) Landing at Mumbai (due 2011?), Capacity Unknown.

[edit]Telecom Training in India

The incumbent telecom operators (BSNL & MTNL) have maintained several telecom training centres at regional, circle and district level. BSNL has three national level institutions, namely Advanced Level Telecom Training Centre (ALTTC) at Ghaziabad, UP; Bharat Ratna Bhim Rao Ambedkar Institute Of Telecom Training at Jabalpur, MP; and National Academy of Telecom Finance and Management.

MTNL incorporated Centre for Excellence in Telecom Technology and Management (CETTM) in 2003-04. It is the largest telecom training centre in India and one of the biggest in Asia with a capex plan of over Indian Rupee ₹100 crore (US$21.7 million). CETTM is situated at Hiranandani Gardens, Powai, Mumbai with built area of 486,921 sq ft (45,236.4 m2). It provides training in telecom switching, transmission, wireless communication, telecom operations and management to corporates and students besides its own internal employees.

Other than the government opearators some private players like Bharti (Bharti School of Telecom Management part of IIT Delhi), Aegis School of Business and Telecommunication(Banglore and Mumbai) and Reliance have started their own training centres.

In addition some independent centres like Telcoma Technologies providing Telecom Training have also evolved in India.

[edit]See also

[edit]References

  1. ^ "India is one of the world's fastest growing and biggest mobile phone markets" (stm). BBC News. 2010-04-07. Retrieved 7 April 2010.
  2. ^ "Indian telecommunications industry is one of the fastest growing in the world" (doc). IBEF. Retrieved February 2010.
  3. ^ "Telecom companies revive value of the Indian paisa" (doc). Economic Times. 2010-05-18. Retrieved 18 May 2010.
  4. a b c d e f g h i j k l m n o p q r TELECOM REGULATORY AUTHORITY OF INDIA
  5. ^ "Union Budget and Economic Survey: Energy, Infrastructure and Communications"Ministry of FinanceGovernment of India.
  6. ^ Nandini Lakshman. "Going Mobile in Rural India". Business Week.
  7. a b "India will overtake China as world's largest mobile market in 2013". informa telecoms & media.
  8. a b "'India will become world's No. 1 mobile market by 2013'". Hindu Business Line.
  9. a b "India to have 'billion plus' mobile users by 2015: executive"(cms). Economic Times. 2009-11-18. Retrieved 18 November 2009.
  10. ^ "India Republic Day Supplement: India: The fastest-growing telecom market" (doc). arab news. Retrieved 1 October 2005.
  11. a b "Indian telecom market to be at Indian Rupee ₹344,921 crore (US$74.8 billion) by 2012" (cms). Economic Times. 2007-11-22.http://economictimes.indiatimes.com/news/news-by-industry/telecom/Indian-telecom-market-to-be-at-Rs-344921-crore-by-2012/articleshow/2563062.cms. Retrieved 22 November 2007.
  12. ^ "India's telecom equipment industry grew 18.6% last fiscal"(cms). Economic Times. 2010-06-10. Retrieved 10 June 2010.
  13. ^ "Public Works Department". Pwd.delhigovt.nic.in. Retrieved 2010-09-01.
  14. ^ Vatsal Goyal, Premraj Suman. "The Indian Telecom Industry". IIM Calcutta.
  15. ^ BSNL
  16. ^ "Indian Government". Dot.gov.in. Retrieved 2010-09-01.
  17. a b c d Dash, Kishore. "Veto Players and the Deregulation of State-Owned Enterprises: The Case of Telecommunications in India" (PDF). Retrieved 2008-06-26.
  18. ^ "Draft Information Paper on Dial-up Internet Access" (PDF). Retrieved 2010-09-01.
  19. ^ "GSM, CDMA players maintain subscriber growth momentum-Telecom-News By Industry-News-The Economic Times". Economictimes.indiatimes.com. 2009-03-18. Retrieved 2010-07-22.
  20. ^ [1][dead link]
  21. ^ "India adds 20.3 million telephone subscribers in March". Economic Times. 2010-04-26.
  22. ^ "Govt bans import of Chinese mobiles, dairy products, toys". Times of India. 2009-06-18.
  23. ^ Rhys Blakely (2010-05-10). "India blocks deals with Chinese telecoms companies over cyber-spy fears". London: Times Online.
  24. ^ "China avoids condemning India over Huawei ZTE ban". Economic Times. 2010-05-17.
  25. ^ Mehul Srivastava and Mark Lee. "India Said to Block Orders for China Phone Equipment"Business Week.
  26. ^ Payal Malik. "Telecom Regulatory and Policy Environment in India: Results and Analysis of the 2008 TRE Survey".LIRNEasia.
  27. ^ Press Release no. 60/2006 issued on 28 June 2006 by TRAI
  28. ^ www.hindustantimes.com/India...internet-user/Article1-638366.aspx
  29. ^ "Hindu Net". Hinduonnet.com. Retrieved 2010-09-01.
  30. ^ Press Release No. no. 35/2006 issued on 10 April 2006 by TRAI
  31. ^ 2 Feb, 2007, 03.11AM IST, Arindam Mukherjee,TNN (2007-02-02). "(Music, games to drive mobile VAS growth)". Economictimes.indiatimes.com. Retrieved 2010-09-01.
  32. ^ "India Telecom market growth and subscribers 2010 | GSM and CDMA operators April 2010 data". Telecomindiaonline.com. Retrieved 2010-07-22.
  33. ^ "The death of STD". Indianexpress.com. 2006-10-12. Retrieved 2010-09-01.
  34. ^ "Free broadband, rent-free landlines likely: Maran". Rediff.com. 2004-12-31. Retrieved 2010-09-01.
  35. ^ www.coai.in
  36. ^ http://www.geohive.com/cntry/india.aspx
  37. a b "Information note to the Press (Press Release No 73/2009)" (PDF). Retrieved 2010-09-01.
  38. ^ http://www.hindustantimes.com/India-now-third-biggest-internet-user/Article1-638366.aspx
  39. ^ "India adds 4.487 cr wireless subscribers in Jan-March". Internetworldstats.com. 2010-06-30. Retrieved 2010-09-01.
  40. a b "Japanese Broadband World's Fastest, Cheapest - Iceland Cools off in Global Broadband Penetration Rankings - US Broadband Penetration Grows to 85.9% Among Active Internet Users - November 2007 Bandwidth Report". WebSiteOptimization.com. 2004-03-24. Retrieved 2009-05-30.
  41. ^ "TRAI for redefining floor broadband speed at 2Mbps". Thehindubusinessline.com. 2009-07-24. Retrieved 2010-09-01.
  42. ^ "Broadband Plans- Broadband Rates- Broadband Internet Plans in India". Airtelbroadband.in. Retrieved 2010-07-22.
  43. ^ "Beam Telecom - Make The Right Connection". Beamtele.com. Retrieved 2010-07-22.
  44. ^ "Bharat Sanchar Nigam Ltd". Bsnl.co.in. 2006-03-31. Retrieved 2010-07-22.
  45. ^ "MTNL VDSL Broadband Internet Services Tariff Plans". Mumbai.mtnl.net.in. Retrieved 2010-07-22.
  46. ^ "Welcome to Reliance Communications". Rcom.co.in. Retrieved 2010-07-22.
  47. ^ "Tata Indicom Broadband 2.0". Tataindicombroadband.in. Retrieved 2010-07-22.
  48. ^ "Tikona Digital Networks launches operations in Delhi". Indiainfoline.com. 2010-02-10. Retrieved 2010-09-01.
  49. ^ ":: O-zone ::". Ozonewifi.com. Retrieved 2010-09-01.
  50. ^ "ARKA Group is a one of the leading India's start-ups business with multiple business". Telesutra.com. Retrieved 2010-07-22.
  51. ^ "Mobile Number Portability in India by Oct31". www.telecomtalk.info. Retrieved 2010-08-21.
  52. ^ Press Release of Department of Telecommunications, No.800-34/2009-VAS,http://www.dot.gov.in/as/MNP/MNP_30.06.2010.pdf
  53. ^ "Mobile Number Portability in India to be phased in from 1 November 2010". www.mobilenumberporting.in. Retrieved 2010-10-27.
  54. ^ Mobile Number Portability Launched in Haryana, Pan India by January 20, 25 November 2010, telecom talk,http://telecomtalk.info/mobile-number-portability-launched-in-haryana-pan-india-by-january-20/49150/
  55. ^ Mobile Number Portability in India to cost Rs. 19, 26 November 2010, techtree.comhttp://www.techtree.com/India/News/Mobile_Number_Portability_in_India_to_cost_Rs_19/551-113581-613.html

[edit]External links

2G spectrum scam

From Wikipedia, the free encyclopedia

The 2G spectrum scam involved officials in the government of India illegally undercharging mobile telephony companies for frequency allocation licenses, which they would use to create 2G subscriptions for cell phones. According to a report submitted by the Comptroller and Auditor General based on money collected from 2G licenses, the loss to the exchequer was Indian Rupee ₹176,379 crore (US$38.27 billion). The issuing of the 2G licenses occurred in 2008, but the scam came to public notice when the Indian Income Tax Department investigated political lobbyistNiira Radia and the Supreme Court of India took Subramaniam Swamy's complaints on record.

In 2008, the Income Tax department, after orders from the ministry of Home and the PMO, began tapping the phones of Niira Radia. This was done to help with an ongoing investigation into a case where it was alleged that Niira Radia had acted as a spy[1].

Some of the many conversations recorded over 300 days were leaked to the media. The intense controversy around the leaked tapes, became known in the media as the Radia tapes controversy. The tapes featured some explosive conversations between Politicians, Journalists and Corporate Houses. Politicians from Karunanidhi to Arun Jaitley[citation needed], journalists like Barkha Dutt and Vir Sanghvi and Industrial groups like the Tata's were either participants or mentioned in these explosive tapes.

Contents

 [hide]

[edit]Parties involved

The selling of the licenses brought attention to four groups of entities - politicians who had the authority to sell licenses, bureaucrats who implemented and influenced policy decisions, corporations who were buying the licenses, and media professionals who mediated between the politicians and the corporations on behalf of one or the other interest group.

[edit]Politicians involved

  • Subramaniam Swamy, activist lawyer and politician, whose letters to the Prime Minister demanding action and affidavits and cases in the Supreme Court brought the issue into the public limelight.
  • Arun Shourie, the minister for Telecom during 2003 in the previous BJP regime. It was Arun Shourie who introduced the controversial technology neutral "Unified Access License", which allowed fixed line operators who had paid much lower license fees to offer mobile phone services, at first in the limited WLL mode (Wireless local loop) and later, following an out of court settlement between mobile operators and the BJP govt, full mobility. This gave an advantage to players like Reliance and Tata Teleservices who managed to get mobile spectrum without paying the hefty fees that earlier operators like BPL Mobile had paid.
  • Pramod Mahajan, the minister for Telecom between 1999 and 2003. Mr.Mahajan was the minister when the BJP Government took the controversial decision to shift from a license fee based regime to a revenue sharing model which was roundly condemned both by political parties and by economic experts.[2] The Comptroller and Auditor General also filed adverse reports citing a loss of over Indian Rupee ₹64,000 crore (US$13.89 billion) caused by this decision. The crux of A. Raja's defence is that he was following a policy of 2G allocations put in place by the BJP and it would be unfair to levy prices based on 3G spectrum to 2G licenses. Pramod Mahajan, who was seen to be friendly with various corporate houses, had been brought in to replace Jagmohan as Telecom minister just days before the decision was announced. The biggest beneficiary of this abrupt shift in policy was Reliance Infocomm who gained thousands of crores of spectrum without paying a dime in additional license fees. Pramod Mahajan and his cronies are reported to have received benami shares of Reliance Industries as a "gift"[3]

[edit]Bureaucrats involved

  • Siddhartha Behura, former telecom secretary who served in the DOT at the time of the 2G allocation.
  • Pradip Baijal, a bureaucrat who is alleged to have implemented policies that favored certain Telecom companies when he was heading the TRAI. Post retirement, Baijal joined Noesis, a consulting firm promoted by Niira Radia[4][5][6]A Raja has made references to Baijal's decisions in 2003 as the basis for his decisions in 2008. The houses and offices of the bureaucrat were recently raided by the Central Bureau of Investigation as part of their investigations.[7].

[edit]Corporations involved

[edit]Media persons and Lobbyists involved

  • Nira Radia, a former airline entrepeneur turned corporate lobbyist whose conversations with politicians and corporate entities were recorded by the government authorities and leaked creating the Nira Radia tapes controversy
  • Barkha Dutt, an NDTV journalist alleged to have lobbied for A. Raja's appointment as minister
  • Vir Sanghvi, a Hindustan Times editor alleged to have edited articles to reduce blame in the Nira Radia tapes

[edit]Shortfall of money

A. Raja arranged the sale of the 2G spectrum licenses below their market value. Swan Telecom, a new company with few assets, bought a license for Indian Rupee ₹1,537 crore (US$333.53 million).[9] Shortly thereafter, the board sold 45% of the company to Etisalat for Indian Rupee ₹4,200 crore (US$911.4 million). Similarly, a company formerly invested in real estate and not telecom, the Unitech Group, purchased a license for Indian Rupee ₹1,661 crore (US$360.44 million) and the company board soon after sold a 60% stake in their wireless division for Indian Rupee ₹6,200 crore (US$1.35 billion) to Telenor.[9] The nature of the selling of the licenses was that licenses were to be sold at market value, and the fact that the licenses were quickly resold at a huge profit indicates that the selling agents issued the licenses below market value.

Nine companies purchased licenses and collectively they paid the Ministry of Communications and Information Technology's telecommunications division Indian Rupee ₹10,772 crore (US$2.34 billion).[9] The amount of money expected for this licensing by the Comptroller and Auditor General of India was Indian Rupee ₹176,700 crore (US$38.34 billion).[10]

[edit]Relationship between media and government

Media sources such as OPEN and Outlook reported that Barkha Dutt and Vir Sanghvi knew that corporate lobbyist Nira Radia was influencing the decisions of A. Raja.[11] The critics alleged that Dutt and Sanghvi knew about corruption between the government and the media industry, supported this corrupt activity, and suppressed news reporting the discovery of the corruption.[11]

[edit]Ratan Tata petitions over leak

The tapes leaked to the public include conversations between Nira Radia and Ratan Tata. Tata petitioned the government to acknowledge his right to privacy and demanded accountability for the leak, with the Minister for Home AffairsCBIIndian Income Tax Department, theDepartment of Telecommunication, and the Department of Information Technology as respondents in the petition.[12]

[edit]Response to scam

In early November 2010 Jayalalithaa accused the Tamil Nadu state chief minister M Karunanidhi of protecting A. Raja from corruption charges and called for A. Raja's resignation.[13] By mid November A. Raja resigned.[14]

In mid November the comptroller Vinod Rai issued show-cause notices to Unitech, S Tel, Loop Mobile, Datacom (Videocon), and Etisalat to respond to his assertion that all of the 85 licenses granted to these companies did not have the up-front capital required at the time of the application and were in other ways illegal.[15] Some media sources have speculated that these companies will receive large fines but not have their licenses revoked, as they are currently providing some consumer service.[15]

In response to the various allegations , the Govt of India has replaced the then incumbent Telecom minister ,A Raja with Kapil Sibal who has taken up this charge in addition to being the Union minister for Human Resources Development.Mr Sibal contends that the "notional" losses quoted are a result of erroneous calculations and insists that the actual losses are nil.[16] [17]

[edit]References

  1. ^ http://indiatoday.intoday.in/site/Story/123400/2G%20Scam/complaint-by-radias-staffer-led-to-her-phone-tapping.html
  2. ^ The ABC of the 2G Scam, http://www.tehelka.com/story_main48.asp?filename=Ne010111THEABCOF.asp
  3. ^ Seeking accountability http://www.frontlineonnet.com/fl2301/stories/20060127004603000.htm
  4. ^ http://news.worldsnap.com/india/2g-cbi-quizzes-niira-radia-97523.html
  5. ^ http://www.taratv.com/top_story.php?task=full&newsid=2151
  6. ^ http://www.thehindubusinessline.com/2010/12/17/stories/2010121751660900.htm
  7. ^ CBI conducts raids; swoops on DMK associates, Niira Radia & Pradip Baijal http://economictimes.indiatimes.com/news/politics/nation/CBI-conducts-raids-swoops-on-DMK-associates-Niira-Radia--Pradip-Baijal/articleshow/7108883.cms
  8. a b Shafi Rahman (6 Nov 2008). "Big scam in 2G spectrum allocation: CPI-M"India Today. Retrieved 3 December 2010.
  9. a b c "What is 2G spectrum scam?"NDTV.comNDTV. 16 Nov 2010. Retrieved 3 December 2010.
  10. ^ "2G scam: 'Raja to blame for losing Indian Rupee ₹176,000 crore (US$38.19 billion)'". The Times of IndiaThe Times Group. 10 Nov 2010.http://timesofindia.indiatimes.com/business/india-business/2G-scam-Raja-to-blame-for-losing-Rs-176L-cr/articleshow/6902487.cms. Retrieved 3 December 2010.
  11. a b Amol Sharma (1 Dec 2010). "Wait a Minute, What Exactly Is Barkha Dutt Accused of?"IndiaRealTimeWall Street Journal. Retrieved 4 December 2010.
  12. ^ "Government orders probe into leaking of Niira Radia tapes"The Economic Times. 29 Nov 2010. Retrieved 4 December 2010.
  13. ^ Sathyalaya Ramakrishnan (2 Nov 2010). "2G Spectrum Scam: Karunanidhi protecting union minister Raja for extraneous reasons- Jayalalithaa charges"Asian Tribune. Retrieved 4 December 2010.
  14. ^ "Telecom Minister A Raja resigns"The Indian Express. 14 Nov 2010. Retrieved 4 December 2010.
  15. a b Joji Thomas Philip (18 Nov 2010). "2G scam: Govt to pull up five telcos". The Economic TimesThe Times Group.
  16. ^ http://europe.wsj.com/article/SB10001424052748704055204576067652193571560.html
  17. ^ http://www.ndtv.com/article/india/2g-war-of-words-kapil-sibal-vs-murli-manohar-joshi-77888

[edit]External links

Tehelka's January 2011 infographic explaining the scam

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