April 23, 2001
Issue


India Today, April 16, 2001

 

COVER
   

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.

 

 
STATES
   

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.

 

 
BUSINESS
   

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?

 

 
ENVIRONMENT
 

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.

 

 
EDUCATION
 

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.

 

 
OTHER STORIES
     
 



 
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FROM THE EDITOR IN CHIEF

Since their launch in India five years ago, mobile phones have changed the way we live, work and play. They have spread like wild fire and now have 3.32 million users, a number projected to grow to 50 million by 2005. This is big business. Thousands of crores have been paid to acquire licences or existing operations. And though controversy has been a constant companion for some time, the scale is vastly different today.

 

Our cover on the Sukh Ram scandal

When bids opened for cellular and basic operations in 1994, they totalled Rs 1,20,000 crore; an astounding Rs 85,925 crore was bid by a company with an annual turnover of only Rs 250 crore. Just a year later, when Sukh Ram had ceased to be telecom minister, investigators uncovered over Rs 3 crore of unaccounted cash in his homes, and there was evidence he had favoured one company over the bidding fee, among other indiscretions. Finally, bids closed for a total of Rs 56,000 crore in licence fee for a period of 20 years. But in three years, operators were bankrupt and were only able to pay Rs 8,000 crore. In 1999, amidst controversy the policy was changed to a revenue-sharing arrangement, spreading payments over a longer period. Operators have used these precedents to skew policy in their favour, making a mockery of the whole tendering process.

We have tracked the growth and scandals with numerous features and cover stories ("The Telephone Trauma", 1983; "Sukh Ram: The Stench of Corruption", 1996; and "The Emergence of the Cellerati", 1998). The recent controversy over WiLL or Wireless in Local Loop is the subject of our cover story this week. A policy change earlier this year permitted basic telephone operators using WiLL technology to offer cheap mobile services as well, cutting into established networks. The case was important enough for the Principal Secretary to the Prime Minister, in his famous post-Tehelka press conference, to categorically say the policy changes were not initiated by the PMO. "The kind of pressure being built even raises questions about the stability and credibility of the Government," says Editor Prabhu Chawla, lead author of the investigative story this week along with Associate Editor Rohit Saran and Special Correspondent Malini Goyal.

Telecom is a key infrastructure area closely linked to India's economic progress. Our story about the zig-zagging telecom policy shows how decisions at the highest levels are manipulated, institutions bypassed and questionable favours granted.


(Aroon Purie)


 
 
 
Care Today
     METRO TODAY
 
   

MetroScape

Wealth Of Art
April 8 saw an unabashed get together of Mumbai's Who's Who when the annual Harmony Show, well known as "Tina Ambani's baby", celebrated its sixth showing at the Nehru Centre.
more...

Looking Glass

Bangalore Hotel:
Park.hotel

Mumbai Store:
Regent Watch and Jewellery Boutique

 

 
    Web Exclusives
DESPATCHES
 

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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