Raja is rational and fair, Tata writes to DMK chief

In the midst of the spectrum controversy, Union communications and IT minister A Raja has found an ally in Ratan Tata...

In the midst of the spectrum controversy, Union communications and IT minister A Raja has found an ally in Ratan Tata, chairman of the Tata Group. In a handwritten letter to Tamil Nadu chief minister and DMK leader M Karunanidhi, Tata has praised Raja’s “rational, fair and action-oriented” leadership. He even said the current controversy was created due to vested interests. One of Tata’s trusted executives personally delivered the letter to Karunanidhi.

It may be recalled that Raja’s predecessor, Dayanidhi Maran, was charged with attempting to arm-twist the Tata Group to give an equity share in its direct-to-home (DTH) television venture to the Sun TV group — owned by Maran’s brother, Kalanidhi Maran. This also became an election issue in Tamil Nadu last year. Tata Teleservices, a Tata Group company, is a national CDMA telecom service provider.

“On the issue of spectrum, his stated policies, for the most part, have been legally sound, rational and well-reasoned. Part of the existing controversy revolves around one approval, which is being contested in the courts. In all other cases, his stated policies appear fair and he deserves everyone’s support,” wrote Tata. “It is essential that history praises the vision, creativity and high growth achieved by you and your minister. Our industry is in the viewing glare of the entire world. If done well, the DMK can possibly claim telecom to be its greatest achievement and most significant contribution to the nation’s growth,” according to Tata.

Blaming vested interests for creating the current controversy, Tata wrote, “This growth would need to come from rational and fair policies — without favourites and without pandering to vested interest groups who are only interested in themselves.”

“I have the highest regard and respect for you as a person of great equity and great vision. I would like to see you derive great kudos for the visionary growth of the sector, which I believe can be delivered under your leadership by Raja,” Tata wrote. He sent his trusted executive to personally carry this letter and explain “the public perceptions, the orchestrated misinformation and the vested interests that are seeking to de-rail the process of growth through technological and spectrum battles, rather than seeking national gain.”

The present controversy between CDMA and GSM players started when the Department of Telecommunications (DoT) allowed mobile service providers to expand their networks using alternate technologies. This implies that operators using CDMA technology for offering mobile services can provide GSM-based mobile services and vice-versa.

Another contentious issue between CDMA and GSM operators is a recommendation by telecom regulator Trai saying that the number of subscribers required by an operator for being eligible for additional spectrum should be increased. This was accepted by DoT. When GSM players opposed it, DoT set up a committee under the Telecom Engineering Centre (TEC), which is responsible for fixing standards, to give the final recommendations on spectrum allocation criteria. On October 31, the committee submitted its report to DoT, recommending more stringent conditions than those proposed by Trai. Now, DoT has set up another committee to review the subscriber criteria for allocation of spectrum.