Category Archives: Telecom

Issues connected with telecom matters

Home Ministry oppose FDI increase in Media.

21 Sunday Jul 2013

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The proposal of the Commerce ministry to increase the FDI from 26% to 49% has been strongly opposed by the Home Ministry on the ground that there is serious security concerns. Well and Good! The Defence minister has opposed FDI in Defence stating that it is retrograde and have got security concerns. Again, well and good!
But what about the increase in Telecom from 74% to 100%. It was also recommended by the Commerce Ministry. Telecom sector is the second line of defence and any increase of FDI is also serious security concern. But where is Kapil Sibal, Communications Minister? Why he is not opposing the FDI increase as has been done by the Home Ministry and Defence ministry? Strange indeed! The Communications Ministry is not interested in security concerns?

PILs against closure of telegram services

12 Friday Jul 2013

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In addition to the PLI filed against closure of telegram services in Madras High Court, another PLI is filed in the Madurai branch of the Madras High Court. A report on the same is reproduced below:

Madurai: Against the backdrop of BSNL discontinuing the 160-year-old telegraph service from 15 July, a PIL was today filed in the Madurai Bench of the Madras High Court here seeking a stay on the order.

A Division Bench of Justice Paul N Vasanthakumar and Justice P Devadoss directed the central government advocate to get instructions and posted the case for hearing tomorrow.

Image for representation only. AFP

Image for representation only. AFP

Seeking the court’s intervention to stay the order of BSNL senior GM discontinuing the service, the petitioner highlighted the various important roles played by telegram.

The petitioner, President of the Federation of Consumer and Service Organizations, M.Sekaran, rejected BSNL’s contention that there are no users of the telegram, alleging the service alone had faced step-motherly treatment.

If BSNL felt that it could not run the service, it could as well hand over the service to the postal department which was handling it efficiently from 1850 to 1990.

Robert Chandrakumar, another petitioner, also filed a PIL with the same prayers on the issue.

The petitioner wanted the telegraph service to be continued at affordable rates.

According to a recent circular issued by Shameem Akhtar, Sr General Manager (Telegraph Services) Bharat Sanchar Nigam Ltd (BSNL) Corporate office, New Delhi, the telegraph service is to be discontinued with effect from 15 July, 2013.

PTI

 

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Defence Minister oppose increase of FDI in Defence

03 Wednesday Jul 2013

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Defence Minister AK Antony comes down hard on proposal for 49% FDI The difference in approach on the increase of FDI in Defence has come out. Commerce Minister Anand Sharma had announced yesterday that FDI in  Defence sector is proposed to be increased from 26% to 49%. The earlier proposal was, as reported, to increase to 74%.

As per the latest reports, Defence Minister A.K.Antony has strongly opposed the proposal. See the following report:

‘In a note to Mr Sharma, the Defence Minister has argued India “cannot afford to be dependent on foreign companies and vulnerable to policies of their countries of origin”.  He also says “Allowing foreign companies to set up manufacturing/ assembly facilities here would be a retrograde step as it will stymie the growth of indigenous design and development.”‘

We fully support the stand taken by the Defence Minister opposing the increase in FDI. There should be nation wide protest against this ‘retrograde step’  to increase the FDI in Defence.

The pertinent question is whether Mr. Antony will be able to withstand against the pressure of the PM as also MNCs or succumb to the pressure.

Whether Communications Minister Kapil Sibal will take a similar stand against increase  in FDI as Defence Minister  A.K.Antony has taken?

Protest against 100% FDI in Telecom – Forum Press Release

03 Wednesday Jul 2013

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The following Press Release has been issued by Forum of BSNL Unions/Associations against the decision of the Telecom Commission to introduce 100% FDI in Telecom:

FORUM OF  BSNL UNIONS / ASSOCIATIONS

Press Release                                                                                                                                   3rd July 2013

BSNL Unions Oppose 100% FDI in Telecom

The decision of the Telecom Commission to increase the FDI in telecom sector from the present 74 % to 100% is totally opposed by the BSNL workers. This decision of the government not only raises serious security concerns, but also will result in the Indian private telecom companies being taken over by the foreign companies and adversely affect the growth of BSNL and MTNL in the fierce competitive atmosphere.

Telecom Sector has always been considered as the second line of defence. Whether in the First War of Independence or in the II World War or in any major wars afterwards, telecommunications always played an important role.  The communications system in the country cannot be under the control of foreign companies, whose interests are based only on profit. Any nation has to be extra careful about its defences, which also require control on the telecommunications systems. In this connection, it is to be pointed out that the unverified mobile connections found out in the hands of the terrorists, belonged to companies with Foreign Direct Investment. If the full control is with the foreign companies who do not have any concern for the security of India, what will happen at times of crises need not be elaborated.

Already 100% FDI is allowed in telecom equipment manufacturing for the last two decades. For the first time, 49% FDI was introduced in telecom services in the 1990s. In 2005, it was increased to 74%. Now the full circle is reaching with 100% FDI, if the central government approves of the same.

It is interesting that as usual, this decision is taken just before the scheduled tours of the Finance Minister and Communications Minister to US, in the second week of July. It is to be noted that the US as also the telecom MNCs have been putting much pressure on the government of India to increase the FDI in telecom services, which is one of fast growing sectors in the country.

The Forum of BSNL Unions / Associations strongly oppose the decision to increase the FDI to 100% in Telecom Sector and demand the government to desist from this dangerous move.

V.A.N.Namboodiri

Convener, Forum

Mob: 09868231431

Telecom Commission for 100% FDI – Our Strong Opposition

03 Wednesday Jul 2013

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The Telecom Commission on 2nd June 2013 has taken the drastic and dangerous decision of increasing the FDI in Telecom to 100% from the present 74%. MNCs and the India private telecom companies have been continuously pressurising the government for such a decision. Even with 74%, the control will go to the foreign shares and now any Indian companies can be fully owned by the foreign companies.

Not only this is going to be a serious security concern, but also may adversely affect the Indian companies who will be compelled to adopt for FDI to face competition. It will adversely affect the growth of the two telecom PSUs, BSNL and MTNL. What happened to the other countries who depended upon full FDI is to be studied further.

The Forum of BSNL Unions/Associations have to take up the matter seriously with the government and demand not to increase the already high FDI in telecom sector.

Biometric feature/s required for SIM card?

03 Wednesday Jul 2013

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It is reported that the Home ministry has asked the DOT to explore the possibilities of making finger print or other biometric features compulsory for the issue of SIM card, to avoid the SIM cards reaching unidentified persons, like terrorists. The recent terrorist attacks and unearthing of many mobiles in the hands of unauthorised persons might have compelled the Home Ministry to this line of thinking.

In order to increase the market share and their profits, private telcos have been issuing mobile connections, even in bulks, without any verification. This has increased the unauthorised connections and danger to the safety of the country. The drastic penalty has not deterred them, in the hope that it will not be easy to find the culprits.

Vodafone prepared to pay Rs. 4,000 crore for 2G

02 Tuesday Jul 2013

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Vodafone has offered the government that it is prepare to pay Rs. 4,000 crore to keep its 2G spectrum, after the licence period over, which is going to be shortly. this is different from the stand taken by it along with Bharti Airtel and idea Cellular earlier. It is not known what differences have cropped after the three companies formed a cartel to defeat the recent actions of spectrum by not bidding at all.

One reason may be the government stand to negotiate with Vodafone regarding the RS.14,000 crore  Income Tax to be paid by it. Instead of taking strong action to get the tax remitted by Vodafone, the government has offering Vodafone a chance to get out of the tax noose or at least  reduce it drastically. Any way a crafty MNC like Vodafone will never agree to offer  like mentioned earlier, unless there is good business opportunity.

 

Roll out of Optic Fibre Cable Network for Defence

29 Saturday Jun 2013

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It has been reported in the press that the Defence Forces are having difficulty due to the non-roll-out of the OFC network, which has been entrusted to DOT, who in turn has allotted the project to BSNL. It was to have been completed by now, for compensating for the release of important spectrum by the Defence to DOT.

BSNL is reported to have floated tender for the OFC in 2010 which was cancelled. Another tender in 2012 was also cancelled. The result is that the network is not rolled out so far.

It is necessary to find out why this important work is not done and who is responsible. The report puts the blame on BSNL. But what is the reason is to be found out. Further the BSNL Management should take immediate action for finalising the same, since it is concerned with Defence.

Forum of BSNL Unions/Associations has written to CMD BSNL with copy to Secretary DOT in the matter.

Spectrum for whom, Defence or telcos?

28 Friday Jun 2013

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While the Defence Department has insisted on keeping some of the important spectrum for defence purposes with it, the private telcos are pressurising the government to transfer the same for being auctioned for providing services. The spectrum is with the defence  as per an earlier agreement with the Telecom and Defence departments.

While it is necessary that spectrum is required for providing service to the people, it is also necessary that the defence should have sufficient spectrum for  defence purposes. Getting more money in the auction alone can not be the criteria for deciding the issue.

DOT blamed for 3G Auction loss by CAG

27 Thursday Jun 2013

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The CAG has blamed DOT for the 3G Auction mess and low auction bids. It points that the loss occurred due to the special clause included in 2008 to permit intra-circle roaming without taking the views of the TRAI.

Let us what the government has to say about the report of CAG?