Editorial- October 2015

In this issue we bring to you evidence on how NK Yadav, Member (Services) Telecom Commission is preying on MTNL, ever since he came to hold the additional charge as CMD of this state telco on June 6, 2015. MTNL is beset with difficulties; it needs an A-list professional of high integrity. But instead, the telecom minister chose Mr Yadav for this task, who is only busy robbing freebies for himself from the company. This includes acquisition of premium phones, cars and fraudulent claim of HRA. All this from a company that has the most adverse Debt to Equity ratio of 27:1 across all sectors. But the babu is busy enjoying his loot, awarding punishment transfers to company officials who dare to do their duty and ask for receipts. For details read our cover story.

Call drops have pained consumers for long. Now only the issue has become intense after Prime Minister’s stern comments. Government intervened and Trai’s new chairperson has come out with a tough consultation paper on compensating the consumers for failure to deliver quality services.

Illegalities in allowing Reliance Jio voice telephony over broadband spectrum at miniscule fee have been covered by us regularly. CAG changed its final report and presented a whittled down figure of losses to the government. CAG denied us the information sought by us under the RTI Act. Now, we have a 104 page original final report before it was diluted. The loss on spectrum valuation is Rs 22K crore and on account of spectrum usage charge is Rs 43K crore – whopping Rs 65K crore loss to the exchequer.

The Modi government is very keen for developing North East region and in September 2014 approved Rs 5,336 crore for boosting telecom infrastructure there. However, the DoT is pushing an outdated technology without even GPRS & EDGE to benefit Shyam’s Mehrotra.

The union cabinet has passed The Arbitration and Conciliation Bill, 2015 amending certain parts. After it becomes the law, the arbitration proceedings would become faster and the process in the Indian courts simplified for the execution of arbitration awards by the International Arbitration Tribunals in the commercial matters. In the Antrix-Devas deal, the government has already been slapped with Rs 5,500 crore award by Singapore based International Arbitration Tribunal. Loop Telecom whose investor KHML has already filed international arbitration against Indian government seeking damages of over $1 billion for 2G licences, will also be benefitted. Vodafone, has also challenged the imposition of income tax amounting to over Rs 12,000 crore. They will also be benefit from the amendments.