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Say
Hello to Another
Scam
The raging corporate war over the
introduction of limited mobility telephone services has turned political,
with the Prime Minister's Office being charged with subverting the regulatory
system and favouring a few business houses. An INDIA TODAY investigation
looks at the conflict between the sanctimonious claims and the grim reality.
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STATES
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Ballot Boxwallahs
The approaching assembly elections
have brought to life five states which are set to witness a stiff fight
and whose results can have a big impact on all major parties. A profile
of the prime contenders who could tilt the balance either way.
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BUSINESS
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Fall
From Grace
Despite a triple-digit growth in net
profits of Infosys Technologies and Satyam Computers, the stock prices
of the two companies have plunged. Is it the gloomy forecast for software
companies that's hammering down the prices?
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Unnatural Alliance
The CNG controversy has taken a new turn, with
doubts being raised about the propriety of the Delhi Government's selection
of Nugas as the sole supplier of the conversion kit.
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EDUCATION
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The Doon Boom
The city that houses Doon School is
now playing host to a whole array of new education barons--with big money
and even bigger ambitions.
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OTHER STORIES
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Home |
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COVER STORY: GOVERNMENT
Cell Sins
Controversy and
telecommunications have seldom parted ways in the past 10 years. And as
the country lurches from one "scam" to another, victims and
villains often trade places. Cellular companies, which are today crying
hoarse over the introduction of limited mobility, were at the centre of
the last big controversy that engulfed the telecom sector in July 1999.
The then NDA government in its caretaker status had allowed all private
telecom companies-basic and cellular-to move out of a system of paying
licence fee to one of sharing a percentage of their revenues with the
government. All telecom companies had bid for ridiculously high amounts
of licence fee and then defaulted on their payment obligations. Since
the arrears of cellular companies to the government were higher (Rs 2,581
crore) than those of basic-telephone companies (Rs 892 crore), the system
was changed. Politicians across party lines had raised a storm over the
alleged favours granted to cellular companies. The scam was claimed to
be of the order of Rs 50,000 crore. In reality, that was the amount cellular
and basic telephone companies would have had to pay to the government
till 2015 if the system of licence fee had continued.
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Free Airways
Spectrum dues of cell companies
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Escotel |
35.6 |
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BPL |
13.0 |
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Spice |
9.0 |
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RPG |
4.5 |
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Tata |
3.2 |
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Dues
from Aug.1, 1999 Figures in Rs crore |
Some cellular companies continue to default,
now on the payment of spectrum charge to the Department of Telecommunications.
Today the outstanding dues of five cellular companies stand at over Rs
65 crore (see table). The companies dispute the amount, claiming that
the calculation of spectrum charges has not been correct. But then, what
about companies like Usha Martin who have been forced to shut service
in most of their circles, leaving customers in the lurch.
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METRO TODAY |
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Web
Exclusives |
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A war of words is on at the Jammu border where
India is trying to build a fence to stop infiltration, much to Pakistan's
dislike, reports
INDIA TODAY's Special Correspondent Ramesh Vinayak in Despatches.
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