Showing posts from November, 2009

Oblivious To Scandal

Vasu Reddy from Chicago

You don’t need much to make a mess out of a good thing. As the old saying goes one bad apple spoils the whole bushel. The glory of surpassing the 500 million connections was superseded by the allegations of the largest telecom scam that ever suspected in the telecom world. While the delays in 3 G spectrum negotiations continue between the military and DOT, a new date has been announced along with a new fee structure.

The telecom minister seems unperturbed with alleged scam that totals a loss of 20,000 to 60,000 to Indian coffers. When the CBI raided the telecom ministry and DOT, followed by a number of locations across the country, there was no surprise element to the public. For several years there was suspicion of wrongdoing, specially supported by the new licensees generating exorbitant valuations, and actually getting paid for it from foreign telecom companies. These multiples (in billions of dollars) were generated without a network o…