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This is an archive article published on June 2, 2004

Cable guy faces cross-connection

When Telecom and IT Minister Dayanidhi Maran steps into Parliament for the first time tomorrow, he must know it could be the start of an occ...

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When Telecom and IT Minister Dayanidhi Maran steps into Parliament for the first time tomorrow, he must know it could be the start of an occasionally jerky journey ahead. For it is in this House that the policies that Maran introduces as a minister will be challenged—not just on their own merits but also because of his personal stakes in some of them.

Whether he likes it or not, Maran will occasionally face charges of a conflict of interest.

It is a difficult situation. Maran’s family has substantial interests in the cable and internet business on which his own ministry will have to sit in judgement.

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Take the Convergence Bill introduced in Parliament by the Telecom Ministry in 2001, that is aimed at delivering cable TV, telephone and internet services to consumers through a single pipe.

Maran’s family happens to control Sumangali Cable Vision (SCV), which provides internet and cable services. It also owns the Sun TV network and is a key stakeholder in DMS Entertainment and HFO Entertainment.

Will this make his job harder? Maran told The Indian Express: ‘‘I was the CEO of SCV and a CEO does not own the company. Besides, the Telecommunications Ministry does not deal with cable.’’

When reminded that his ministry had the power to dictate to the Telecom Regulatory Authority of India (TRAI), which in turn was even handling pricing and tariff-related issues, Maran replied: ‘‘TRAI basically came in to look after telecom, broacasting issues are a temporary addition. Besides, TRAI chairperson is like the Election Commissioner. Can anyone dictate terms to the Commissioner?’’

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He omitted to mention that while the regulator could make recommendations to the Government, it was the Government’s decision that ultimately prevails.

There is another ticklish area. The family’s company, SCV, gets its licence from the ministry that Maran heads. The ministry also has the power to make amendments to these licences. Meanwhile, service operators have been asking the ministry for compensation packages as the rules of the game have changed.

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