Showing posts with label US. Show all posts
Showing posts with label US. Show all posts

Saturday, June 01, 2013

El comandante departs

Chavez's death has created a void but the movement will thrive on the impetus provided by him, says Saurabh Kumar Shahi 

Venezuelan President Hugo Chavez finally lost the battle against cancer that he fought so bravely for over two years. Vice-president Nicolas Maduro, who is also pegged as his successor, made the announcement on public television shortly after emerging from the Military Hospital in Caracas, where Chavez was being treated. “Those who die for life can’t be called dead,” a tearyeyed Maduro said.

On February 18 this year, the 58-year-old President returned to Caracas from Cuba, where he was operated upon for cancer. Chavez travelled to Havana on December 10 last year for the fourth surgery after his cancer resurfaced, in spite of close to a year-and-a-half of treatment that included chemotherapy. The second round of treatment had begun in late March 2012, when Chavez started receiving radiation treatment in Cuba after an operation in February 2012 that removed a second cancerous tumour from his pelvic region. His first tumour was removed in June 2011.

His death has come as a blow to progressive leadership all over the world. Indeed, Chavez's impact on world politics was much more than any world leader of his time. A curious mix of personal charisma, pro-people policies and anti-imperial stand made Chavez a darling of the millions.

Chavez came from a very humble background. Born in a poor family on July 28, 1954 in Sabaneta, he struggled his way up and graduated from the Venezuelan Academy of Military Sciences in 1975. It was sometime in the late 70s that Chavez started participating in the revolutionary movements inside the Venezuelan armed forces that was seen by the masses as the protector of capitalist and imperialist interests.

His first chance towards redemption came in 1992 when he spearheaded a military coup to topple the regime of Carlos Perez that was close to the US administration. However, the attempt did not succeed and he was arrested and jailed for 25 months. This failed attempt brought him to the attention of the masses who were desperately looking for a leader from among themselves to lead them. It gave a kick-start to Chavez's political career.
 
Chavez started touring Venezuela and soon garnered a solid following for himself. His oratory, especially his no-holds-barred style, stuck with the masses and catapulted him to his first presidential election victory in 1998. He never lost the elections after that. However, in 2002, a lobby of pro-American politicians, along with some soldiers and officials backed by the United States, staged a coup against Chavez. He was briefly arrested and sent to an undisclosed location. However, merely 48 hours after the coup, a counter manoeuvre by common Venezuelans and officers loyal to him swept him back to office. Over the last 14 years, Chavez put himself and his agenda to the test on 14 separate occasions, and won thirteen of them by huge margins.

Chavez was a street fighter who fought his way up the ladder but unlike many in the past, he never severed his connection with the common masses and made it a habit to listen to their problems. The idea behind his successful Bolivarian revolution was to provide economic and political independence to the masses of Latin America who had suffered from their geographical proximity to the United States all these years. Venezuela under Chavez put its oil revenue to proper use and funded the massive social projects that returned social statistics that stunned even the United Nations. He extended the revolution in the neighbouring countries too and utilized their expertise in lieu of the cheap oil that was sold to them.
 
It was his ascent to power that revitalized the leftist, anti-imperialist movement in Latin America and saw similar socio-political experiments in neighbouring Brazil, Bolivia, Argentina and Chile. With Cuba at the ideological helm, Latin America for the first time in decades started exerting its economic and political rights in the region. Mercosur, as an economic body, not only challenged the American dominance in the regional market but also put it on the back foot by forcing it to accept the economic positions that it wouldn't have even considered a decade or so ago.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

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Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Wednesday, May 01, 2013

10 Ways to revive the Indian Economy

With faulty policies and incompetent policy makers, the Indian economy has seen its worst. IIPM Think Tank suggests ten critical policy measures that can save the Indian economy from mirroring the paralysed socioeconomic conditions of US and Europe

When the northern, eastern and north eastern power grids in India collapsed in July and left more than half the country in the dark, it was declared to be another vivid indicator of India’s incredible growth story having run its course (following S&P’s downgrade, which predicted that India would be the first fallen angel among the BRICs). What the world chooses to ignore is that structural flaws in our power sector in generation and T&D have been holding back our economy for years, including the years where they felt so overtly optimistic (and even insecure) about India’s potential on the world stage. For the record, India achieved a net capacity addition of around 4 GW per year from 1997-2007. But a McKinsey report (however much you might wish to believe it) indicates that a growing India’s needs from 2007-2017 merit a net capacity addition of 20-40 GW per year, i.e. 5-10 times that figure. And the 11th Five Year Plan added only around 53.12 GW, or a little over 10 GW per year. In fact, the last year (2011-12) was particularly a good one with installation of 20.5 GW. In other words, despite the best attempts of the ‘powers’-that-be in scuttling our growth in the past decade, the economy has somehow pulled itself together and kept up the heat.

Clearly, it appears that countries are perceived very similarly to companies today, and you are only as good as your last quarter. By that yardstick, the Indian economy is still struggling with a depressed GDP growth of 5.5% for Q1, 2012-13; which makes it 9 consecutive quarters of declining growth rates. The surprising part is the shock and awe most Indians feel with this slowdown, as if they were in the middle of a rude awakening! That’s really because even till June last year, the government was predicting 9% GDP growth for India in FY 2011-12 and the RBI was looking at an 8% figure!

However, as B&E had concluded from its statistical analysis last year (refer B&E’s issue dated August 4, 2011 titled “The Upcoming Indian Economic Slowdown”), there were really no surprises. We had predicted it based on a multifactor correlation analysis using inflationary trends in India as the base. Interestingly – and snapping back temporarily to the start of the past decade – during the year 2000, the Indian economy followed a trend in inflation similar to the US. The trend was again repeated in 2010 when the Indian economy mirrored the US economic condition of 2008 just before it (US) stumbled into a deadly recession. As per our polynomial forecasting trend line analysis, the correlation will continue till the end of 2012 with its impact lingering till the last quarter of this fiscal year. So our prognosis is that India would see a relatively depressed growth at least till FY 2012-13. But all is not lost. In fact, this trend is based on the fact that the government will continue to simply do nothing to reverse the situation. In other words, it’s quite easy to electrifyingly turnaround our prognosis.

What is it that our government spokespersons – including our Prime Minister – have done best in this economic slowdown? Blame external factors, and that’s quite a convenient thing to do at the moment! The US grew by 1.7% yoy for the quarter ending June 2012 as compared to 2% for the previous quarter. The Eurozone remained in a quandary with GDP shrinking by 0.4% yoy for the quarter and jobless rates at a record high of 11.3% in July. And that’s why the escapist reasoning by the government. But then, that is hardly an excuse for not setting our own house in order. There is no denying the fact that the Indian economy has sufficient potential of its own accord, and if given the right impetus, India can indeed get back to 8-9% and beyond sooner than expected. B&E and IIPM Think Tank present 10 critical ways in which we can bring the economy back to its high growth phase.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 

Tuesday, March 05, 2013

“I see no reason why Middle-East conflict can’t be resolved”

In an exclusive conversation with Akram Hoque and Sayan Ghosh, H.E. Mohamed Ali Daher, the Ambassador of the Hashemite Kingdom of Jordan talks about Middle-East peace process and democracy in Jordan

B&E: Jordan has a very balanced relations with US, Israel and the Arab nations. How does it maintain the status quo?
H.E. Mohamed Ali Daher (MD):
It’s true that Jordan enjoys a very good relationship with all its neighbours. We thought establishing peace with all the countries in the area and Israel would give an extension to channel our resources for development. The urgency of establishing peace has always been there and it’s a global phenomenon that peace has its own rewards. Now, the question is what have we achieved? We are aspiring for better understanding for peace as we say in English that it needs “two to tango”. So, we also need the other side to understand the value of peace and help in establishing permanent peace in the region.

B&E: Establishing peace in the Middle-East region is very much possible. Do you agree to this?
MD: I see no reasons why not. After all, we can’t live life of agony and state of restlessness for all of our life.

B&E: Who will be playing the most critical role in the Middle-East peace process?
MD:
Indeed, it’s Israel and the Palestine. Because they have to sit together and talk about peace. Otherwise, the problem between these two countries will not only be a matter of concern for the Middle-East region, but also for the whole world. At present, the US is playing a good role as an inter-mediator to resolve the issue. They have a special envoy George Mitchell, who is shuttling around in the entire region. Jordan is also a key player in the peace process due to its closeness with these countries. However, Jordan don’t play any role away from the rest of the Arab world. As you probably know that in the last Arab summit conference that was held in Beirut, the Arab leaders universally adopted peace plan and it is still on the table. But I am afraid that we have not received any encouraging reaction from Israel. I don’t know how long that would be on the table. Hopefully, it will be implemented. This really reflects how much the world community is emphasising on establishing peace in the region.

B&E: Despite being ruled by the Royal family, Jordan ranks first in the Arab Democracy Index. How do you rate democracy?
MD:
For this, we first have to understand the meaning of the word “democracy.” Democracy is so much under the influence of certain social structures. There is no general norm for democracy. Democracy, in my understanding, is that people are not oppressed, they enjoy their rights without any obstruction and they do their duties for the country. These are all integral and essential elements of any democracy. Considering this, I will say, we are enjoying democracy in Jordan and as you mentioned it correctly we are doing well in the index. His Majesty King Abdullah II has always emphasised that democracy is an essential part of the whole process of development and upliftment of the country’s economy. Moreover, like other democratic countries, we have a parliament and it is elected in a very democratic way. As a matter of fact, the country will see its next general election sometime in November this year. Now talking about how some of the western society preview democracy, I am afraid that we have difficulty in understanding western definitions. Democracy in our country is basic necessity and is based on our religion Islam. You cannot say that the Arab world lacks democracy.

I don’t see any Arab country that has a military rule or martial law. Thus, democracy can be tailored according to the need of the people and we are proud of what we are now. We are enjoying all kinds of freedom.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.




Thursday, January 17, 2013

PARITY: HEADS OF THE STATES VS ECONOMIC PERFORMANCE

Comparisons of national GDPs with respective salaries of heads of state reveals some interesting facts

Singapore is quite an aberration though. It pays a whopping $3.14 million (nearly 8 times that of the US President) to its President and $2.47 million to its Prime Minister; while the size of its economy is just $182 billion. Though there are debates over the high salary among Singaporeans, the Government defends it vehemently, on the logic that Singapore compensates its heads of state on the basis of parity with corporate leaders! Perhaps the most striking example would be that of India. The President of democratic republic of India gets a mere Rs.18 lakh annually. The basic salary of the President was a pitiable Rs.120,000 annually prior to 1998 while India emerged as the 6th largest economy in the world with GDP in PPP worth International $1,702.7 billion. This was revised to Rs.6,00,000 ($12,000) in 1998. Later in late 2008, the salary was raised to its current level, while the country witnessed rapid growth and the GDP crossed the trillion dollar mark. That was when India became the 4th largest in terms of GDP in PPP terms and the 12th largest economy in terms of nominal GDP. The PM of India, who is the actual functional head, has an even lower salary of Rs.15,00,000 per year ($31,250).

In UK, the Prime Minister gets about $2,79,000 annually, while its economy is the 6th largest in the world with a nominal GDP of $2.68 trillion. Tiny Hong Kong pays $516,000 (more than the US President and 13 times that of the Indian President!) to its Prime Minister annually, while it has nominal GDP of $215.35 billion, 1/65th of the US economy and 1/5th of the Indian economy. Japan, the 2nd largest economy in the world with a GDP of $4.91 trillion pays $243,000 to its PM annually. Similarly, Australia pays $2,29,000 annually to its PM while it is the 14th largest economy of the world with GDP of $1.013 trillion. In addition, Canada, Germany and France with nominal GDP of $1.499 trillion, $3.673 trillion and $2.867 trillion respectively pay their PMs $2,46,000; $3,03,000 and $3,18,000.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
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IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Saturday, January 05, 2013

‘Which’ hunt?

Iran’s done well as a democracy

Mahmoud Ahmedinejad is back on the seat of power, but victory celebrations have been dampened to an extent by a string of violent protests post the elections. The protesters, led by opposition party leader Mir Hossein Mousavi maintain that the election results were fraudulent. However, the authorities have ruled it out. While they admitted irregularities, they have maintained that they were not large enough to affect the landslide victory. So finally, he can afford to get back to business.

Global reaction has been mixed, though, and understandably so. Countries like India, China, Venezuela, Russia, Brazil, Sri Lanka and Pakistan (besides the Middle East) have appreciated and congratulated Ahmedinejad. Ironically, most of the western countries including the US, France, UK, Dutch were mute during the peaceful election and suddenly got into action as the violence spread.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles.

Friday, December 07, 2012

North by west... to the killing fields

A billion dollar firm with a billion reasons to be called inglorious

The last one among the world’s largest defence contractors that deserves to be in our inglorious list is Northrop Grumman. It is more famous for its designing, system integrating, and manufacturing of defence electronics and many other military and commercial weapons. Among various kinds of military products that the company produces are aircraft, aircraft carriers, military vessels, missile satellite systems, electronic censors and information systems. Northrop is one more truant company witnessing growth in employment and sales revenue. During 2007, there were about 122,600 people employed in the firm globally; by the end of 2008, the figure reached 1,33,570 – an 8.9% increase in employment in 2008 during the current global economic mess. And one doesn’t need to wonder about the reasons. Similarly, its sales revenue has also gone up from $30.11 billion in 2006 to $32 billion in 2007 and finally to $33.9 billion in 2008. Northrop is one of the firms filing the highest number of patents – in 2007 alone, the company filed over 8,511 patents. Northrop acquired companies like Integic Corporation in 2005, Essex Corporation in 2007 and 3001 International in 2008.

Expectably, Northrop Grumman has equal contributions in war crimes. Although 90% of its products go to the US government, most of its weapons go to US aided undemocratic countries who are accused time and again of breaking international laws. Its sophisticated deadly weaponry also goes to countries like Korea, Taiwan, Bulgaria, Slovakia, Saudi Arabia and UAE apart from Australia, India, Japan, UK, US, NATO, Italy, Germany etc. An example to their reach is that Israel’s reserved A-4 attack aircraft, TA-4 training aircraft and even the AH-64 attack helicopter are made by Northrop Grumman.
Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.


Thursday, November 08, 2012

From subprime to ‘near prime’

Financial viruses spreads to the EU

After the US, it’s Europe, & in Europe, after Société Générale, it’s UBS, the largest Swiss bank is latest victim of the most dreaded & infamous 21st century financial shark, commonly identified as the ‘subprime’. UBS has recently announced writing-off $4 billion worth of securities as part of its plans to absorb subprime losses. Earlier in October, the bank had written down $3.6 billion in value of its mortgage-backed securities, & then, in December, it further wrote-off $10 billion. Now the problem will spread because of “near prime mortgages,” said Simon Adamson, Senior Analyst, CreditSights, a London based independent credit research firm, to B&E, adding, “UBS’ main trouble is with Monoline (bond insurance), ALT-A mortgages, Fico & CDO (Collateralised Debt Obligation). This is not end of the story, as banks are not coming clear about their exposure to such instruments; it’s difficult to forecast nature & amount of the crises.”

Both Swiss Federal Banking Commission & US Securities & Exchange Commission intend to ascertain if the UBS had booked inflated prices for mortgage bonds despite knowing their values had dipped. UBS, on its part, disapproves any special audit of itself.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.

 
IIPM : The B-School with a Human Face

Friday, October 26, 2012

She came and she saw

Hillary Clinton visits India and tells Delhi that Barack Obama too is good for business

For a US Secretary of State, Hillary Rodham Clinton spent a substantial five days on her official tour to India. Her association with this country goes back to the presidential years when she came as First Lady and then returned later on private visits. In addition, Hillary has had close interactions with elite Indo-Americans organisations and individuals, some of whom have been her very prominent backers. Not surprisingly, this trip to India was her fourth.

The trip was designed to highlight the depth of ties and understanding between the US and India and had all the photo-ops that Americans know Indians love: a meeting with Bollywood icon Amir Khan, a picture of political correctness; and get together with tycoons and the impoverished in equal measure, all of which was great news as far as Indian TV channels were concerned.

In an address in New Delhi, she said that it was time for more people-to-people contacts between the two countries! Hardly. Such contacts that exist between the people of these two countries would scarcely have a parallel in the modern world: for example the US remains the most favoured destination for Indian students. In the last seven months, there has been a whopping 38% increase in the number of Indian candidates going to the US. The connection between the two civil societies is chronicled virtually every day in the media.

Says journalist Jeremy Kahn, reporting Hillary’s India trip, “ this hardly seems to be an earth-shattering policy announcement. In fact, it seems to be an extremely trite pronouncement. Her own schedule demonstrates that the US-India relationship long ago moved beyond formal diplomacy. So this should hardly have been billed as “a major address.”


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.

 
IIPM : The B-School with a Human Face

Tuesday, October 23, 2012

‘Which’ hunt?

Iran’s done well as a democracy

Mahmoud Ahmedinejad is back on the seat of power, but victory celebrations have been dampened to an extent by a string of violent protests post the elections. The protesters, led by opposition party leader Mir Hossein Mousavi maintain that the election results were fraudulent. However, the authorities have ruled it out. While they admitted irregularities, they have maintained that they were not large enough to affect the landslide victory. So finally, he can afford to get back to business.

Global reaction has been mixed, though, and understandably so. Countries like India, China, Venezuela, Russia, Brazil, Sri Lanka and Pakistan (besides the Middle East) have appreciated and congratulated Ahmedinejad. Ironically, most of the western countries including the US, France, UK, Dutch were mute during the peaceful election and suddenly got into action as the violence spread.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.

 
IIPM : The B-School with a Human Face

Wednesday, August 01, 2012

Better look dumb on paper?

As Ambassador to India, Roemer has had a wonderful stint full of achievements, but revelations of his diplomatic communications to the US government have undermined his character to a significant extent

Serena Williams, while losing quite unimpressively at the US Open this week, screamed at the match referee after sorely losing a point, “If you ever see me walking down the hall...walk the other way” Many Indian politicians might wish to replicate Ms. Williams’ greetings for Timothy Roemer, whose two years term as 21st US Ambassador to India (July 23, 2009 - April 26, 2011) provided unprecedented success for American interests in India. During his tenure, President Barack Obama made his longest stay in a foreign nation in India; US export to India surged by 17%, both countries signed the Counterterrorism Cooperation Initiative and many high level American diplomats including Treasury Secretary Tim Geithner, Commerce Secretary Gary Locke, and Homeland Security Secretary Janet Napolitano made their visits to India.

While all that may be impressive, his amateurish interpretations of diplomatic affairs as an ambassador surprised many and have seriously undermined his achievements, as WikiLeaks cables made some of his official cables public. As ambassador, his statements were supposed to be highly responsible and he should have ideally not painted them with his own perceptions on the situation. But his cables have yielded rather undesirable results, ever since they caught the WikiLeaks bug.

As per one of the WikiLeaks cable releases, former National Security Advisor of India M. K. Narayanan told Roemer that India wants to “maintain a regular dialogue with China so as to avoid a repeat of the 1962 Indo-China war.” In another cable, he reported to US that Narayanan had told him that India was not interested in David Headley’s extradition. Narayanan strongly refuted this in the media.



Tuesday, July 31, 2012

No one to ‘lie’ abroad?

Many embassies are running without ambassadors, putting question marks on the countries that are unable or unwilling to employ them

As countries of the world increasingly compete for political, economic, military, resource – basically all kinds of power – diplomacy has become increasingly important. The diplomatic baton is carried by the ambassadors or High Commissioners (in the case of Commonwealth countries) presiding over the embassies in different nations. In spite of the importance and authority attached to the post of ambassadors in pursuing the political and diplomatic process in the target country, it is flabbergasting to find that a sizeable number of them are missing in most embassies of the world! In US, the most important country in the world to carry out diplomatic efforts, as many as 13 embassies have no ambassador. The fact that this list excludes Bhutan, Cuba, North Korea, Myanmar, Somalia and Iran with whom US does not have diplomatic ties makes it even more surreal! Similarly, 18 embassies in Japan are run without ambassadors while New Zealand has as many as 30! Surprisingly, with nine missing ambassadors, India has fewer vacancies in embassies than US!

Most of these absent ambassadors are from very small, little known and impoverished states: Togo, East Timor, El Salvador, et al in US; Gabon, Guyana, Haiti... et al in Japan; and Burkina Faso, Rwanda, Costa Rica et al in India. It is difficult to comprehend their trajectories and come to a conclusion about why they don’t have any diplomatic goals in countries much bigger and powerful than theirs! This ennui is perhaps brought about by their much superior counterparts refusing to recognise them on a respectable standing. In a quid pro quo example, US operates 34 embassies abroad that have no ambassadors.

Read more......

Source : IIPM Editorial, 2012.

An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting

IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....

IIPM: Indian Institute of Planning and Management

Tuesday, July 24, 2012

Will AT&T have The Last Laugh?

The Entire Telecom Fraternity is apprehensive about AT&T’s Buyout of T-Mobile. They say it will Benefit the buyer. It will. But the more Important debate is – will This Deal finally go through? B&E analyses why The US Justice Department does not really have a strong Anti-Competitive case against AT&T.

The world is currently fretting over who actually will gain in AT&T’s $39 billion acquisition of the $21.35 billion-a-year revenue-earning T-Mobile. Do a reality check, and you will realise that this is one of those few pointless exercises in life. The second largest AT&T, (valued at $176.34 billion) takes over the fourth-largest T-Mobile, and displaces Verizon (valued at $108.09 billion) as the new #1 US carrier. Period. The biggest advantage to AT&T is that this takeover will give it control over T-Mobile’s HSPA+platform, which will grant the combine a strong foothold on 4G, making it a strong rival to Verizon (which plans to roll-out its 4G service in H2, 2011). Given the degree of technological synergies and the expansive hold on frequency bands across US, this marriage, like any other during the past decade amongst US carriers, has promises written all over it. You said competition? We are talking about the new probable leader (AT&T and T-Mobile combine) with a bag full of 126.53 million customers and the follower with 93.2 million. While speaking to B&E, Scott Woolley, Contributing Editor of Fortune magazine says, “AT&T’s $39 billion buyout of T-Mobile addresses the company’s urgent capacity crunch with the immediate expansion of critical infrastructure. It is also a move to improve network quality for millions of AT&T subscribers and gives T-Mobile customers access to Long Term Evolution (LTE – a move towards 4G technology).” It is a case of enterprise slamdunk!

But that supremacy is what gives experts all reasons to be suspicious of any forecast – will this deal win the approvals of the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC)? That is the unsettling question. For AT&T, it is a $3 billion question (the amount AT&T will be paying T-mobile if the deal falls apart), while for Deutsche Telekom AG, it is $36 billion lost in cash & stock. A shot at becoming America’s largest telecom operator does win a lot of unwanted attention. AT&T claims that this acquisition will bring down call rates. At face value, the argument sounds genuine.

For those worried about prices biting-off a pound of the consumer flesh, the price vis-a-vis consolidation trend during the past decade will help soothe some nerves. Typical to the US market, here is a reality check. Post 1999, level of competition in the US market has actually fallen. Bell Atlantic and GTE combined to form Verizon. SBC, Bell South, Cingular & the old AT&T is today the new AT&T. Sprint & Nextel became one and then gobbled-up Virgin. And Verizon bought Alltel in 2008. In short, there were 11 big players before the start of the century which controlled 85% of the US market. Today, there are four which control 82%. According to a 2010 US GAO Report, which measured cellular price movements using US CPI Urban Consumers Cellular Telephone Index (CPI-U) as the barometer, “from 1999-2009, wireless prices have decreased by 50%”. The secret as it seems: price in the US & European wireless market have always been determined by technology than by competition. With 4G implementation in place, prices of the existing 3G offerings should only head southwards.


Untitled Document
Source : IIPM Editorial, 2012.

An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age WomanIIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....

IIPM: Indian Institute of Planning and Management


Monday, July 23, 2012

Will AT&T have The Last Laugh?

The Entire Telecom Fraternity is apprehensive about AT&T’s Buyout of T-Mobile. They say it will Benefit the buyer. It will. But the more Important debate is – will This Deal finally go through? B&E analyses why The US Justice Department does not really have a strong Anti-Competitive case against AT&T.

The world is currently fretting over who actually will gain in AT&T’s $39 billion acquisition of the $21.35 billion-a-year revenue-earning T-Mobile. Do a reality check, and you will realise that this is one of those few pointless exercises in life. The second largest AT&T, (valued at $176.34 billion) takes over the fourth-largest T-Mobile, and displaces Verizon (valued at $108.09 billion) as the new #1 US carrier. Period. The biggest advantage to AT&T is that this takeover will give it control over T-Mobile’s HSPA+platform, which will grant the combine a strong foothold on 4G, making it a strong rival to Verizon (which plans to roll-out its 4G service in H2, 2011). Given the degree of technological synergies and the expansive hold on frequency bands across US, this marriage, like any other during the past decade amongst US carriers, has promises written all over it. You said competition? We are talking about the new probable leader (AT&T and T-Mobile combine) with a bag full of 126.53 million customers and the follower with 93.2 million. While speaking to B&E, Scott Woolley, Contributing Editor of Fortune magazine says, “AT&T’s $39 billion buyout of T-Mobile addresses the company’s urgent capacity crunch with the immediate expansion of critical infrastructure. It is also a move to improve network quality for millions of AT&T subscribers and gives T-Mobile customers access to Long Term Evolution (LTE – a move towards 4G technology).” It is a case of enterprise slamdunk!

But that supremacy is what gives experts all reasons to be suspicious of any forecast – will this deal win the approvals of the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC)? That is the unsettling question. For AT&T, it is a $3 billion question (the amount AT&T will be paying T-mobile if the deal falls apart), while for Deutsche Telekom AG, it is $36 billion lost in cash & stock. A shot at becoming America’s largest telecom operator does win a lot of unwanted attention. AT&T claims that this acquisition will bring down call rates. At face value, the argument sounds genuine.

For those worried about prices biting-off a pound of the consumer flesh, the price vis-a-vis consolidation trend during the past decade will help soothe some nerves. Typical to the US market, here is a reality check. Post 1999, level of competition in the US market has actually fallen. Bell Atlantic and GTE combined to form Verizon. SBC, Bell South, Cingular & the old AT&T is today the new AT&T. Sprint & Nextel became one and then gobbled-up Virgin. And Verizon bought Alltel in 2008. In short, there were 11 big players before the start of the century which controlled 85% of the US market. Today, there are four which control 82%. According to a 2010 US GAO Report, which measured cellular price movements using US CPI Urban Consumers Cellular Telephone Index (CPI-U) as the barometer, “from 1999-2009, wireless prices have decreased by 50%”. The secret as it seems: price in the US & European wireless market have always been determined by technology than by competition. With 4G implementation in place, prices of the existing 3G offerings should only head southwards.

Fair enough. The only issue is – if we dig a little deeper, we discover that this decline in cellular rates do not add up. The CPI-U doesn’t measure the expenditure incurred on phone bills. With the increase in sales of tablets and smartphones, consumers are paying more for data services. Even AT&T’s revenue from post-paid connections per customer has increased by 3% over the past several years, revenues from data services was up by 47.57% in 2010 as compared to 2008. Something to ponder over.



Saturday, July 21, 2012

Why Hasn’t The DGCA head been Suspended yet?

The DGCA head should be Immediately Suspended & Questioned on numerous loopholes in our Aviation Infrastructure Endangering Thousands

“Whoever willfully flies any aircraft in such a manner as to cause danger to any person or to any property on land or water or in the air shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to ten lakh rupees, or with both.” These are the glorious words from the Aircraft (Amendment) Act, 2007 that adorns the website of the Directorate General of Civil Aviation. Whoever from DGCA was consulted for making this Act must have been either extremely shrewd or farsighted... or both. The onus of any ‘flight’ crime endangering lives or property, as per the Act, only lies with the pilots and not with anybody else. Given the latest rot exposed in the fudging of pilots’ marks, one questions why this Act should not be expanded to include in its ambit even on-ground officials like the head of DGCA who, either through deliberate commission or omission, have been as much party to the issue of endangering lives of flyers as the criminal pilots themselves. While pilots have been arrested, and so have been some low-key DGCA officials, the huge question is, why hasn’t the DGCA head, an IAS officer called SNA Zaidi, been suspended till now?

Charge 1 - Criminal negligence: The latest series of scams shows how pilots used forged mark sheets to secure their ‘Airline Transport Pilot Licences’. These licenses are required by co-pilots to graduate to become a ‘commander’. 4,000 such licences are under scrutiny. The police have arrested Parminder Kaur Gulati of Indigo and Jitender Kishen Verma of Air India in this scam. These pilots forged mark-sheets in order to obtain their respective licences. Even a veteran pilot – Air India captain J. K. Verma (flying for Air India since 1989) – forged his testimonials to get his licence. Arjun Giare, who obtained his license through a faked mark-sheet (forged Class 10 certificate to meet the minimum age criteria) was even suspended in the year 2000 by the US Federal Aviation Authority. In another case, Garima Passi, daughter of Director of Air Safety in DGCA, was suspended recently as even her licence was based on forged documents.

Crime branch officers (who are investigating this case) have commented that “such a scam could not have taken place without some DGCA officials being in the know.” Mark-sheets are issued to pilots from the DGCA’s central examination office in R. K. Puram in New Delhi, which are to be submitted to DGCA’s head office for further processing. The issue here is not that pilots have fake licenses – pilots have original and authentic licenses. But these licences are based on fake mark sheets – which possibly could not have been approved at the license issuing end, unless DGCA officials throughout the organisation were complicit to the act.