Watch out Bill Gates

More importantly, Ambani is keener on getting a slice of the US voice and data market which will give Reliance higher returns and make Reliance Infocomm the first real MNC of Indian origin.

Ready for the hit?

Indian telephone users had better brace themselves for a steep increase in phone bills after All Fools Day. Despite a new minister Telecom Minister and chief of the Telecom Regulatory Authority of India TRAI, consumers have been ignored and there has been no revision in the proposed hike of nearly 70 per cent in local charges.

The TRAI has, in its absurd wisdom, fixed the floor for local call charges at 40 paise for 15 seconds under the pretext of blocking predatory pricing. The decision will insulate the local call market and prevent competition in the telecom business from benefiting ordinary consumers.

Although TRAI was probably looking at protecting the two public sector telecom companies 8212; MTNL Mahanagar Telephone Nigam and BSNL Bharat Sanchar Nigam 8212; cellular operators are not complaining either. So long as local call rates are high and consumers have no choice, the cellular operators with their low installation costs are huge beneficiaries.

The tragedy is that the TRAI, despite several years of existence has ignored consumers8217; demands to determine installation costs of fixed line operators independently, and has preferred to go by the cost claims of service providers. A consumer backlash to the high local call rates after April may force service providers and the regulator to see reason.

Another rethink

Having allowed Gujarat Ambuja Cement Ltd GACL and Grasim Industries to slip through a shady loophole and move towards gaining 8216;creeping control8217; over ACC and Larsen 038; Toubro respectively, the regulator is now in a mood to re-examine the takeover code.

After internal deliberations, SEBI executives have recently concluded that although Grasim and GACL were technically within the rules, their actions have certainly vitiated the spirit of the takeover code.

In case other companies are planning to exploit the same loophole, we learn that SEBI soon plans to amend the code. In case SEBI plans to drag its feet over blocking the loophole, it is bound to face some prodding by Members of Parliament. However, it is not BJP MP Kirit Somaiya who is holding SEBI8217;s feet to the fire this time, but Congress MP Sri Prakash Jaiswal. Jaiswal, who heads the Midas Touch Investors Association has written to Finance Minister Jaswant Singh asking him to protect small investors8217; rights by amending the controversial Takeover Code immediately.

He points out that the Joint Parliamentary Committee JPC too had 8220;found that the conduct of the Chairman of the Takeover Committee was inappropriate8221; and noted that he had given legal advice to companies seeking an exemption from making an open offer under the code in his private capacity. With an Action Taken Report ATR to be soon submitted to parliament, SEBI would hopefully amend the Takeover Code in a hurry.

Journalists8217; protest

When it comes to rejecting regulatory restrictions, media organisations are the same all over the world. The American Securities and Exchange Commission SEC plans to ask print reporters who quote stock analysts to disclose the analyst8217;s potential conflicts of interests in the story.

Analysts and journalists who violate the rule will trigger a ban on anybody from the analyst8217;s firm speaking to anybody from the journalist8217;s news organisation. Although the rule is already applicable to television and radio analysts, Amercian print organisations have termed the proposal controversial and protested its implementation saying that it would interfere with their editorial discretion. If the SEC enforces the rule, it should be a matter of time before the Indian regulator introduces similar rules for the media too.

E-mail Sucheta Dalal