Thursday, November 11, 2010

The largest embezzlement in Indian history

With reference to the 2G spectrum misappropriation discussed in previous post(s), the Comptroller and Auditor General (CAG) in its report to Mrs. President, submitted on Nov. 10, has indicted Mr. A. Raja (still a Telecom Minister) causing the grave loss of ` 140, 000 crore or $33 billion to the Indian Govt.

Mr. Raja has deliberately altered the rules and regulations to benefit the mobile service operators (sic). As informed in previous posts, 9 firms were issued licences, bundled with start up of 2G spectrum, in January 2008 at Rs 1,658 crore for pan-India operations.

The Telecom Ministry is still vindicating Mr. Raja with the clarification that he followed 1999 Rules for disbursing spectrum. How could anyone (I'd rather restrain myself from using any vulgar term here) still justify the disbursement with such an idiotic explanation ?

The UPA govt., after being extremely successful on foreign policy, has largely failed at the implementation of the various schemes (MNREGA, Mid-day Meal) and handling of its supporting parties.

Mr. Raja, after the exposing of 2G spectrum misappropriation, is still enjoying the privileges as a Minister. Is it not the failure of govt or we should think of it as a lack of articulation skills of Mr. Prime Minister?
Where's the so-called Youth Leader of the govt., is he short of ideas or cannot accept the mistakes of his govt. or he's still not able to understand the exposé ?
He alleges Bihar govt of misusing of Central funds but when Nitish Kumar challenges him for a live debate, he replies nothing.
Is this how, the youth of India is going to transform the country ? It is disheartening to see the Gandhians ruling the country for more than a century and there isn't a leader who can lead the country.

Why does Mr. R. Gandhi went dumb in front of the media? Has he not gained sufficient understanding of the country even after passing 40 years ?

There's no one to answer it yet, and i look hopefully at Baba Ramdev. ;)

Monday, June 21, 2010

Germany auctions 4G

After the fill-up of coffers, thanks to 3G & WBA auctions in India which would reduce the fiscal deficit from 5.5 to 5% , we'll have private players fighting for a new &interesting tariff war from next year beginning, in the meantime, Germany has recently auctioned its 4G spectrum in 224 rounds of bidding for over 6 weeks and become the 1st European country to do so.

Although the auction's total revenue of nearly 4.4 billion euros was a welcome windfall for German state coffers, it fell far short of the 50 billion euros generated from the sale of 3G frequencies in 2000. (Remember , India fetch  $15.4 Bn from 3G auctions )

It is interesting to see here that ,close to DSL speed auctioning (3G), fetched 12 times a decade ago. This can be attributed to factors, most importantly, to the technology neutral market in mobile communications in developed countries in Europe .
Also, the revenue on investment isn't as alluring as it was a decade ago, infact only 4 existing operators purchased the spectrum with Vodafone spent 1.42 Bn Euros,Telefonica's O2 1.38 billion euros, Deutsche Telekom 1.3 billion euros and Royal KPN's E-Plus 283.6 million euros.
Also, newer regulations such as operators must first build networks that cover 90 percent of the population in villages with a population of not more than 5,000 inhabitants.

Its interesting to see how events get unfolded in India in the next decade.

Thursday, June 10, 2010

National (India) Frequency Allocation Table

While strolling through the Internet, i stumbled upon Wireless Planning & Co-ordination Wing of Deptt of Telecommunication, Govt of India.

It contains an exhaustive allocation of radio & other spectrum in the country as effective from 2002.
I suppose, it could benefit any of the stroller here.

here is the link .

Wednesday, June 2, 2010

Promising a bettter tomorrow: Infosys 2009-10 Annual Report

Until now, I was bewildered at how does Indian Companies particularly IT giants recovered so rapidly from recession period apart from looking at number of surveys highlighting hiring spree, clientele, etcetra but i never trusted the sources.

I was eagerly waiting for the official document by some IT company & when world's largest postal service Indian Post delivered Annual Report Infosys 2009-10, a optimistic smile prevailed through, as i unpack the 100% recycled report, looking at its front cover of the cover featuring a blue background on 2/3rd part & white clouds concentrated on right bottom corner with the title saying  "Building Tomorrow's Enterprise" .

While grabbing the last year's report from the dust-filled Kota-stone made rack, i can feel the big difference of IT giant in the Post recession period from the very first look.

Last year's report front cover was totally white with some statistics about the company in the right half of the cover & the title was ostensibly, "Enhancing Trust" .

Well, its not good to judge Book by its cover but you can ostensibly perceive the mood of official documents.

The company net profit after tax dipped by Rs 16 cr to 5803 cr.

I hadn't yet read the report yet but i can feel the difference & my conviction that the Indian IT market is lethal by global ups & downs has been apparently proved wrong.

I'll post next (a) few reads on the same topic. Your comments are invaluable to me.

Tuesday, May 25, 2010

What's inside Radio wave spectrum

If you've read the previous blog(s), you must've questions regarding the other radio wave spectrum that exist & provide us with ubiquitous & essential information, entertainment, etcetra, from around the globe .
If you don't have the above question(s), then also you can sneak into the image below as it will provide you with insight into the airy waves around our environment .

If you've questions regarding understanding of above spectrum details, you can ping me & i'll surely reply to the best of my knowledge.

Sunday, May 23, 2010

2G Spectrum Scandal : Raja(s) uncovered

A pioneer media journalism by The Pioneer uncovering the Raja(s) who will soon be "Ranks", the beggar .
Read the full report here .

Saturday, May 22, 2010

The Great 2G spectrum swindle

Mr. A.Raja, Union Minister for Telecommunication, has been alleged with the one of the biggest scam in the history of India, causing an estimated loss Rs. 60,000cr to the Govt. of India.

The Minister claims that there is no truth in the allegations against him.
He says that whatever procedure was followed in the year 2001 has been adopted by him as well. But there were mere 50 lakh subscribers in the year 2001 compared to 37.5 crore mobile phone users by the end of March 2008.
The logic provided by Mr.Raja can be understood even by a 5 year old boy.
Nevertheless, PM and his fellows are handicapped at sacking The Minister since DMK chief,
M. Karunanidhi intimidate them of withdrawing the support as goggled` Karunanidhi explains that "Raja is a Dalit. That is why dominant forces are levelling malicious charges against him".

Here's the 2G spectrum auctioned in Oct. 2008.

New list of Operators who bid for spectrum -->

Govt raises close to Rs 10K cr by selling spectrum to the above mentioned companies. Now, there is a twist-in-the-tale,
Out of the companies mentioned above, the two companies Swan Telecom (not shown in above table) and Unitech do not have any prior experience in the business of mobile phone, broadband or related services. Swan Telecom has obtained Spectrum license to operate in 14 circles for an amount of 1500 crore while Unitech has obtained license to operate in 22 circles by paying 1600 crore respectively.

Within a matter of six months these two companies have sold majority of their stake to foreign companies. It had sold 45% of its shares for a whopping amount of 4050 Crore to a company called Etisalat which is based out of UAE due to which the valuation of Swan Telecom had increased to Rs. 9990.56 crore. Unitech had sold 60% of its stares to a Norway based company Telenor for Rs. 6120 crore due to which the valuation of Unitech had increased to a monstrous amount of 10,731 crore. Just by leveraging their ability to acquire Spectrum license, Swan Telecom and Unitech had made massive 700% return on their investment within a matter of six months.
Raja’s ministry made Rs. 10,772.65 crore by selling 2G license to 9 companies whereas Swan Telecom and Unitech just by selling half of their stake had proved the fact that their license is worth more than 20,000 crore. If we consider the market value of these two companies, the Government by selling license to these nine companies should have generated 70, 022.42 crore as license fee. In that way our country has incurred a loss of over Rs. 60, 000 crore.

( Stats taken from various resources )