Skip to main content

Heavy-handed regulation, slow-moving reforms characterize Modi's one year in office: Vodafone chief

By A Representative
Prominent British daily "Financial Times" (February 26) has criticized Prime Minsister Narendra Modi for "heavy-handed regulation and slow-moving political reforms" as the main hurdles for India’s "battered" telecom sector's efforts to move towards developing next-generation broadband services. The daily quotes the outgoing chief executive of Vodafone, India's second biggest telecom operator, to warn that India may risk missing "a huge opportunity”.
Marten Pieters, who leaves his post at the UK-based telecom group this month, says the daily, just another "most prominent foreign executive" who has chosen to finally break silence and chosen to complain about "limited progress in improving India’s business environment under Modi". The remarks come even as Modi is about to complete one year in office.
One of India's largest foreign investors, which has spent more than $12 billion in developing its business since it launched its India operations in 2007, the daily says, the Vodafone group has "endured a number of problems from a highly publicized $2.6 billion tax dispute to frequent battles over inadequate and excessively expensive supplies of telecom spectrum."
Pointing out that most recently Vodafone "spent a further $4 billion in India’s most recent auctions last month", Pieters is quoted as saying, "India’s issuance of spectrum in bits and pieces has driven up prices and let telecoms groups with roughly $55 billion in net debts." He regrets, “The government has been very focused over the last few years to tap this industry as a milk cow.”
Pieters believes that the telecoms sector is in a “fundamentally worse” condition than when he took up his role as chief executive officer in 2009, adding, the company's debts now mean "operators are unable to roll out services to rural areas or to invest in new broadband infrastructure, hurting telecoms operators as well as companies in fast-growing sectors such as e-commerce."
“We have a huge broadband penetration problem in this country,” Pieters says, adding, “We are worse than Kenya, we are worse than lots of other countries which are supposed to be much less developed than India. There is such a huge opportunity to build services that would help development. But by driving the prices up you create a debt overloaded industry.”
According to Pieters, conditions on the ground haven't yet improved in India, with telecom companies facing excessive taxes and charges, which meant Vodafone had to pay "nearly 30 per cent of gross revenues to the government." He adds, "In general there is too much bureaucracy for the wrong reasons. Tax collection has been extremely aggressive, and we have not seen much change there yet."
The daily says, the Vodafone executive's comment comes even as it begins rolling out superfast 4G telecoms services later this year, even as its focus continuing to be on expanding take-up of more basic data services, where massive opportunities remain for growth.

Comments

TRENDING

1857 War of Independence... when Hindu-Muslim separatism, hatred wasn't an issue

"The Sepoy Revolt at Meerut", Illustrated London News, 1857  By Shamsul Islam* Large sections of Hindus, Muslims and Sikhs unitedly challenged the greatest imperialist power, Britain, during India’s First War of Independence which began on May 10, 1857; the day being Sunday. This extraordinary unity, naturally, unnerved the firangees and made them realize that if their rule was to continue in India, it could happen only when Hindus and Muslims, the largest two religious communities were divided on communal lines.

The curious case of multiple entries of a female voter of Maharashtra: What ECI's online voter records reveal

By Venkatesh Nayak*  Cyberspace is agog with data, names and documents which question the reliability of the electoral rolls prepared by the electoral bureaucracy in Maharashtra prior to the General Elections conducted in 2024. One such example of deep dive probing has brought to the surface, the name of one female voter in the 132-Nalasopara (Gen) Vidhan Sabha Constituency in Maharashtra. Nalasopara is part of the Palghar (ST) Lok Sabha constituency. This media report claims that this individual's name figures multiple times in the voter list of the same constituency.

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor*  This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

Spirit of leadership vs bondage: Of empowered chairman of 100-acre social forestry coop

By Gagan Sethi*  This is about Khoda Sava, a young Dalit belonging to the Vankar sub-caste, who worked as a bonded labourer in a village near Vadgam in Banskantha district of North Gujarat. The year was 1982. Khoda had taken a loan of Rs 7,000 from the village sarpanch, a powerful landlord doing money-lending as his side business. Khoda, who had taken the loan for marriage, was landless. Normally, villagers would mortgage their land if they took loan from the sarpanch. But Khoda had no land. He had no option but to enter into a bondage agreement with the sarpanch in order to repay the loan. Working in bondage on the sarpanch’s field meant that he would be paid Rs 1,200 per annum, from which his loan amount with interest would be deducted. He was also obliged not to leave the sarpanch’s field and work as daily wager somewhere else. At the same time, Khoda was offered meal once a day, and his wife job as agricultural worker on a “priority basis”. That year, I was working as secretary...

Proposed Modi yatra from Jharkhand an 'insult' of Adivasi hero Birsa Munda: JMM

Counterview Desk  The civil rights network, Jharkhand Janadhikar Mahasabha (JMM), which claims to have 30 grassroots groups under its wings, has decided to launch Save Democracy campaign to oppose Prime Minister Narendra Modi’s Vikasit Bharat Sankalp Yatra to be launched on November 15 from the village of legendary 19th century tribal independence leader Birsa Munda from Ulihatu (Khunti district).

Ground reality: Israel would a remain Jewish state, attempt to overthrow it will be futile

By NS Venkataraman*  Now that truce has been arrived at between Israel and Hamas for a period of four days and with release of a few hostages from both sides, there is hope that truce would be further extended and the intensity of war would become significantly less. This likely “truce period” gives an opportunity for the sworn supporters and bitter opponents of Hamas as well as Israel and the observers around the world to introspect on the happenings and whether this war could have been avoided. There is prolonged debate for the last several decades as to whom the present region that has been provided to Jews after the World War II belong. View of some people is that Jews have been occupants earlier and therefore, the region should belong to Jews only. However, Christians and those belonging to Islam have also lived in this regions for long period. While Christians make no claim, the dispute is between Jews and those who claim themselves to be Palestinians. In any case...

Fate of Yamuna floodplain still hangs in "balance" despite National Green Tribunal rap on Sri Sri event

By Ashok Shrimali* While the National Green Tribunal (NGT) on Thursday reportedly pulled up the Delhi Development Authority (DDA) for granting permission to hold spiritual guru Sri Sri Ravi Shankar's World Culture Festival on the banks of Yamuna, the chief petitioners against the high-profile event Yamuna Jiye Abhiyan has declared, the “fate of the floodplain still hangs in balance.”

Two more "aadhaar-linked" Jharkhand deaths: 17 die of starvation since Sept 2017

Kaleshwar's sons Santosh and Mantosh Counterview Desk A fact-finding team of the Right to Feed Campaign, pointing towards the death of two more persons due to starvation in Jharkhand, has said that this has happened because of the absence of aadhaar, leading to “persistent lack of food at home and unavailability of any means of earning.” It has disputed the state government claims that these deaths are due to reasons other than starvation, adding, the authorities have “done nothing” to reduce the alarming state of food insecurity in the state.