Agra, August 9
Tata Teleservices today said it would invest $2 billion (over Rs 8,000 crore) in rolling out GSM-based mobile services in the country.

The company, which currently offers mobile services on CDMA platform, is planning to launch the service by the end of the year, but is concerned about the slow pace of spectrum allocation by the government.

Speaking to PTI, Tata Teleservices managing director Anil Sardana said, "Over the next two years, the company will be putting in $2 billion for setting up nationwide GSM network. We are rolling out the network very quickly wherever we have been given spectrum so far." The company has received spectrum in five circles even though it had applied for a pan-India allocation.

He said the delay in allocation in other circles was putting the company at "competitive disadvantage" as its arch-rival Reliance Communications has already done a soft launch of GSM services last week.

"We do understand that there are security concerns in some of the states/circles where spectrum cannot be allocated.

But wherever it is available there should not be any delay as the government had earlier announced in January this year that enough spectrum is available in most of the circles to accommodate all the new players as well to meet the needs of the existing operators," he added.

On the recently announced 3G policy, he said there was no clear roadmap for the CDMA operators and the matter has been taken up with the government, which has assured the players of looking into their case.

On the company's plans to rope in a strategic partner for its tower business, Sardana said the company was reviewing the business model since the government has now allowed sharing of active infrastructure.

"We are talking to a host of companies for a strategic partnership in both active and passive infrastructure sharing... the talks are going on track and soon we will announce our decision," he said.

Tata, which claims to have a subscriber base of over 27 million, is eagerly awaiting implementation of mobile number portability to lure subscribers from rival GSM players. The company hopes to improve its revenues by moving into the GSM space.

On the recently announced recommendations for allowing mobile virtual network operator and the subsequent impact on the Tata-Virgin alliance, he said the rights to use Virgin brand was with Tatas but it was too early to talk about whether the alliance will become an MVNO. — PTI

Shillong, August 9
Union minister for the development of north-eastern region (DoNER) Mani Shankar Aiyar has called for a special thrust in country’s foreign policy to improve economic relations with the Bangladesh for the sake of rapid growth in the North-East region that is connected with the rest of the country for all purpose through a 26-km wide Siliguri corridor in North Bengal.

Speaking at a seminar at St Edmunds’ College here on “Look South — A Meghalaya perspective”, Aiyar said transit facility for trade purpose through Bangladesh was important for Meghalaya among all north-eastern states.

“Vast plains of Bangladesh or the erstwhile East Bengal were a natural hinterland for Meghalaya or then Khasi and Jaintia hills areas of undivided Assam. But the partition of the country in 1947 changed everything overnight much to the adversity of people of Meghalaya,” he said adding that worse came after the 1965 war with Pakistan when all transit facilities for India through the then East Pakistan (now Bangladesh) were denied.

The DoNER minister said the Look-East Policy (LEP) in the North-East starts with looking south. “If we can sort things out with Bangladesh all other issues related to the policy will fall in place,” Aiyar said.

While reiterating his stand that trade relations with Bangladesh can only develop if the Central government opt for a foreign policy shift vis-a-vis Bangladesh, he pointed out that the impediment to economic cooperation mainly stemmed from Bangladesh’s hostile stances against India in providing shelter to Indian insurgent groups, Islamic fundamentalist groups, and remaining blind to continued infiltration by Bangladeshi nationals to India.

He said India too needed to be more generous in helping Bangladesh to improve the life of their people so that people from that country stopped sneaking into India in search of greener pastures. He called upon all north-eastern states to lobby hard to convince New Delhi about the dire need for better economic ties and transit facilities through Bangladesh. 

New Delhi, August 9
Slow growth of the state-run BSNL despite favourable conditions being provided by the government has forced telecommunications minister A Raja to take up the matter with the Department of Telecom (DoT), directing it to work out a mechanism where important pending decisions could be expedited fast to bring in more revenue for the PSU.

In a letter to telecom secretary Siddhartha Behura, the minister said, "I am deeply concerned over the slow growth in business of BSNL in spite of regular review meetings with the officials of BSNL. It is a serious matter and it has to be monitored and reviewed by the secretary (telecom) on regular basis".

Although BSNL itself is to take decisions, which would bring in more revenue, the DoT being the nodal ministry can ask the PSU to speed up the process. The minister has asked the secretary to structure a device of regular monitoring of such proposals in DoT itself through the government's nominee on BSNL board.

The minister is apparently upset over the BSNL's slow approach on the value-added service (VAS) front in spite of financial incentives and business leverages. The minister feels in the competitive environment there is a scope for increasing revenue from VAS and BSNL can get much more revenue from VAS if it is able to take quick decisions.

"A large number of proposals for VAS on revenue-sharing basis, in which no investment is required from BSNL, are pending with the PSU for long for decision making. BSNL may be directed to look into such proposals on priority and in time-bound manner," Raja said.

New Delhi, August 9
Tata Communications’ managing director and CEO Srinath N has been named as 'Telecom Person of the Year' by the India-based Voice and Data magazine.

The magazine conferred the honour on Srinath for transforming the erstwhile state-owned Videsh Sanchar Nigam Ltd (VSNL) - in which the Tatas bought a majority stake in 2002 - into a multinational player in the international long-distance space.

Tata Communications has the world's largest network of submarine cables and serves customers in over 40 countries. Tata Communications also bagged the award for international long-distance calling.

IMI mobile — a value-added service (VAS) start-up — was named the emerging company of the year at the same ceremony which was the 9th annual event by the magazine.

State-owned BSNL, which was in the news for talks about the company getting listed soon with its IPO bagged the award in the overall telecom services and fixed national long-distance categories.

Nokia maintained top position in the mobile handsets category having 62.5 per cent market share, while Bharti Teletech, the makers of Beetel, and LG Electronics won the top honours in the fixed line and fixed wireless line category.

Manoj Upadhyay, managing director of Acme Tele Power Ltd won the Technovator award for offering cost-effective, energy-efficient and integrated passive infrastructure solutions to telecom companies.

In the infrastructure and equipment category, the winners were Ericsson (for wireless infrastructure), Cisco Systems (for enterprise equipment) and Nokia (for telecom equipment). 

Air India (National Aviation Company Ltd) will breath free. Its fleet, new and small, will fly uninterrupted. The flights will no longer be rescheduled or re-routed, as done so far. The government dignitaries, like Prime Minister and President will be utilising new aircraft, known as 'Indian Air Force', acquired from the Boeing (US) at a cost of Rs 937 crore. The first sophisticated VVIP jet has already arrived at Delhi airport where interior designs to suit Indian VVIPs are being incorporated. The aircraft is fitted with security gadgets, including system to tackle hostile missiles. The remaining two aircraft will arrive before the end of September. The arrival of these aircraft will help VVIP movements without affecting civil aviation operations. These aircraft were ordered some years ago. As VVIP movements are handled independently, Air India will not be required to keep couple of aircraft waiting for the government bigwigs. While it augurs well that India will be having three sophisticated aircraft, many Indian airports will require upgradation.

Even after this much-needed relief by the end of September, NAC's woes are unlikely to end because merger move has not been successful. Losses are multiplying at jet speed. The unrest in staff, particularly in the Indian Airlines family, is growing. Unions are threatening to resort to agitation to secure heavy arrears due to them for several years. The scenario will be considerably improved if the NAC is able to control over-head expenses. Apart from cost-cutting, NAC has to make several other reforms to make airline truly commercial, as private and foreign carriers have been.

Fares on national and international routes have been hiked. But, according to airline bosses, this hike is not enough to earn the tag of 'cut even' on many sectors. The flow of traffic on several sectors within India and outside has reduced. Some carriers are finding the going tough and some are contemplating to close down. The industry evaluation is that at least another 15 per cent hike in fares is essential for carriers to sustain. The aviation analysts feel that if the hike is brought about, it will be counter productive for the aviation sector.

The work on the new, extended runway is undergoing at war footing because Delhi International Airport has already missed two deadlines. "Now we are determined to start trial runs on August 15," said a senior Delhi airport official. There is sadly not much rapport between DIAL and Air Traffic Controllers. "Many of us cannot handle flights on new runway" said an official, adding: "We have been provided basic training and orientation but it is not enough ". Another official added: "We are prepared to work an extra hour but we cannot compromise on safety norms as we have to adhere to duty and time-limit stipulations". The consensus is that ATC is under-staffed and strength should be increased from 200 to 300.

New Delhi, August 9
Continuing its five-day losing streak, gold prices dipped below Rs 12,000 mark by losing Rs 90 to Rs 11,910 per 10 gram on the bullion market here today largely on weak global trends after US dollar strengthened against the euro.

Silver also witnessed a similar fate and suffered a significant drop of Rs 720 to Rs 21,980 per kg.

Trading sentiments on domestic markets were mainly dampened after the gold in global markets plunged to a three-month low of 850.50 dollar an ounce.

Standard gold and ornaments which had lost Rs 750 each in past four trading sessions, fell further by Rs 90 each to Rs 11,910 and Rs 11,760 per 10 gram, respectively. — PTI

Q. I had invested Rs 3 lakh in a Post Office Monthly Income Scheme (POMIS) at 9% interest p.a. The interest was received regularly every quarter and this was shown as income in my income tax return and was taxed as per the tax laws.

The maturity amount has now been received after 5 years with a 10% bonus. I would like to know whether this bonus amount of Rs 30,000 can be treated as long- term capital gain as the same has been received after 5 years, and if indexation cost is applicable for arriving at the tax liability.

Also, how is the maturity amount of Post Office recurring deposit scheme should be treated for income tax purposes?

— Raj Talreja