11 digit mobile number for you!

The Indian Telecom department, in 2003, had planned for 10 digit mobile numbering that would last for 30 years, but given the meteoric rise in the number of mobile subscribers, the quota seems to be over within 5 years. The growth in mobile subscribers has been nearly 100% year on year reaching 250 million by the end of last month.

The tele-density in the country is more than 25 per cent now, with the average monthly mobile growth at over 8 million. The government has set a target of 500 million phone subscribers by the year 2010.

To accommodate this growth, the DoT plans to introduce an additional prefix of 9 to every mobile number taking it to 11 digits. So, `99’ will be the first two digits in every mobile number, in the 11-digit regime.
TEC (Telecom Engineering Centre) has recommended a timeframe of six to nine months, for converting the existing 10-digit mobile numbers to the 11-digit format. The shift to 11-digit number will apply to all mobile users-GSM (global systems for mobile communications) and CDMA (code division multiple access), old and new subscribers.

Nine mobile operators were recently given over 120 telecom licenses to offer services across many circles. Currently, the established players offering mobile phone services include Bharti, Reliance Communications, Vodafone Essar, Idea Cellular, Tata Teleservices, Aircel-Maxis, Bharat Sanchar Nigam Ltd (BSNL), Mahanagar Telephone Nigam Ltd (MTNL) and Spice.

The new telecom operators will be allotted the spare levels of 90 and 91 in the 10-digit series. But, they too will have to migrate to 11 digits, by prefixing '9', in the same timeframe as the existing telecom companies

However, the fixed line phone numbers would continue to remain as is it is. While all GSM and CDMA subscribers whether old or new, would now have 11 digit numbers.

Apart from India, China and UK follow 11-digit numbers, while USA has a more integrated pattern of common numbering plan with similar numbers for mobile as well as landline numbers, much like Tata ‘Walky’ and Reliance ‘Hello’.

Summer is here: Tata Tea forays in soft drinks.

Summer is here and all the Food and Beverages companies are gearing up to increase their product's visibility. Companies are ready to tap the huge huge potential market and the competition is all set to become stiffer between local and international players.

Tata Tea, a premiere Indian tea company, has made its foray into the branded cold drink market with the launch of T!ON. The launch took place in Chennai, targeting youth. T!ON is available in three exciting flavours, Mango Rush, Peach Punch and Apple Buzz, the 400 ml pet bottle is priced at Rs. 22.

Tata Tea Executive Director Sangeeta Talwar calls it a defining moment in her company’s history and something that is all about “disruptive innovation”.

The beverages market size is almost double that of branded tea, in which Tata Tea currently operates. Tea contributed close to 80 per cent of the Rs 4,366 crore company’s sales in the last financial year and the company is conscious of the warning signals.

While T!ON’s success is yet to be seen, Tata Tea has been firmly on course to being a brand-centric beverage company for some time now. It has in the past made acquisitions like Tetley, Good Earth (herbal, medicinal and traditional teas), Eight O’ Clock Coffee and Himalayan Water to diversify its range.

Germany moves toward bank nationalization.

Germany stepped up efforts to stabilize its banking sector, approving a draft law allowing forced nationalizations and saying it would use its new powers to take control of lender Hypo Real Estate.

The German step is the latest example of state intervention in the banking sector as countries across the globe abandon free-market principles and move to shore up institutions seen as crucial to the functioning of their broader economies.

The new German legislation, which was backed by Chancellor Angela Merkel's cabinet, but must still be approved by parliament, breaks a postwar taboo in giving Berlin the right to expropriate, or dispossess, shareholders in domestic banks.

Merkel's "grand coalition" agonized for weeks before choosing this path, aware that it is linked in the minds of many Germans to Nazi seizures of Jewish property in the 1930s and East Germany's assault on private business after World War II.

In the end it decided it needed the "Enteignung" option to ensure it could take control of Munich-based Hypo, but imposed strict time limits on any expropriation to make clear it was not mulling similar moves with other banks.

"We examined this very carefully and I don't believe we have any alternative," Merkel told reporters.

Hypo has received 102 billion euros ($128.4 billion) in guarantees from the state and fellow banks over the past year but remains in dire financial straits.

Berlin has said the bank, which was hit hard by its exposure to the collapsing U.S. mortgage market a year ago and has spiraled downwards since, cannot be allowed to fail because of its key role in the German Pfandbrief, or covered bond, market.

But taking control of Hypo and preventing it from sucking in more taxpayer money has been complicated by the fact that U.S. private equity firm JC Flowers owns a quarter of its stock.

Berlin has been negotiating with Flowers, which bought the stock June 2008 for 22.50 euros only to see it plummet to just above 1 euro, but has yet to reach a settlement.

Last Resort

Before taking a decision to expropriate, Berlin has vowed to explore all other options.

The favored solution appears to be to take control through a simultaneous capital reduction and increase which would push up the state's holding and allow it to squeeze out other shareholders.

The new legislation makes this possible by reducing the threshold needed to inject fresh capital to 50% plus one share from a previous threshold of just over 75%.

"Only if this does not work would the last resort come into play, and that is an expropriation," Merkel said.

Hypo Real Estate is not the only German bank that has been hit hard by the global financial crisis and forced the government to intervene.

Last month Berlin took a 25% stake in Commerzbank, the country's second biggest bank.

Sources: CNN Money

Obamania: rebuilding regional relations!

April 2009
US to Lift some curbs on travel to Cuba.


President Barack Obama plans to lift longstanding U.S. restrictions on Cuba, allowing Cuban-Americans to visit families there as often as they like and to send them unlimited funds.

The gesture, which could herald more openness with the Castro regime, will fulfill a campaign promise and follows more modest action in Congress this year to loosen travel rules.

The president has authority to loosen the restrictions on travel and remittances to Cuba on his own. The new rules will affect an estimated 1.5 million Americans who have family members in Cuba. Other Americans are allowed to travel to Cuba but only if they qualify through certain cultural, educational and other programs.

It will come amid a series of international gestures by President Obama recently.

• Obama moved to improve relations with Russia...
• Told an audience in France recently that he was there to listen them.
• Previously, he made an outreach to the people of Iran, sending a video message calling for a "new day" of relations between Washington and Tehran.

Last May in a campaign speech in Miami, Mr. Obama said, "It's time to let Cuban-Americans see their mothers and their fathers, their sisters and their brothers. It's time to let Cuban-American money make their families less dependent on the Castro regime."

The travel and remittance restrictions stem from the embargo, put in place in 1962 after Fidel Castro came to power in Cuba. President Jimmy Carter allowed the travel ban to lapse.
But President Ronald Reagan reinstituted the travel ban with some exceptions. Under President Bill Clinton, Cuban-Americans could visit family once a year. President George W. Bush's policy was at one point even looser, but in 2004, he tightened the rules, allowing family trips once every three years, and narrowing the definition of who qualified as family. Sisters, brothers, mothers, fathers and grandparents qualified, but uncles, aunts and cousins did not.

Some Cuban-American circles have pressed to maintain U.S. restrictions because of their antipathy for Fidel Castro and his brother, Raul, who replaced him as leader after Fidel became ill. "How do you help people speak out about human rights violations if you're basically extending the dictatorship abroad?" said Mauricio Claver-Carone, director of U.S. Cuba Democracy PAC.

Source: WSJ

Worth Pondering!

Something I came across and is worth pondering!!!
(Click on the image to view it larger)

Indian Economy on slow track...

India's economy grew at the slowest rate in almost six years, 5.3% in the quarter ended Dec. 31 2008, signaling the global downturn's impact even in a nation less dependent on exports than others in Asia. Gross domestic product grew 8.9% in the same period the year before and 7.6% in the previous quarter, according to the Central Statistical Organization.

Some of the key issues the economy is facing are:

• Recessions in key export markets such as the U.S. and Europe have prompted Indian exporters to cut production and lay off workers.
• Manufacturing output dropped to 0.2%.
• Capital inflows have all but dried up as risk-averse investors shun emerging markets.
• Drop in farm production.
• Indian rupee weakening on daily basis now.
• Liquidity crunch is affecting infrastructure and capital intensive projects.
• Country's debts are swelling, that might affect the investment grades of the country.
• Scheduled elections.

All these issues on a short term seems to be towering on growth meter. My view is economy will be back on track only in the year 2013. It might improve by 2010 but the boom would be witnessed only by the end of fiscal 2013.

Slumdog "Oscar" Millionaire!

Slumdog Millionaire, no doubt one of the best movies made this year. I really liked the movie - the characters, individual performances, direction, cinematography, the flow of the story and the complete package. But was it worth 8 oscars, I doubt!

"Success brings many relatives" goes apt with the movie. The movie is a British movie with how a guy from Indian slums goes on to win million rupees in a show, as a theme. It is not an Indian movie. The media has played bigger role in making movie big and making us believe that its an Indian movie.

I disagree with people criticizing that movie has shown only grey areas and it has depicted India incorrectly. I believe has shown one of the many faces of India, which very much exists. India is too diverse with lots of shades. This movie happens to reflect the negative part. And the criticism makes me believe that the movie is really well made!

If you try to look beyond the horizon, the movie might open avenues for foreign investors investing in redeveloping slums. India might get foreign help in relocating poor and less priviledged people. It opens a host of opportunities for the country.

Congratulation to the Oscar winning team!!! Mr. Rehman you have made a nation of billion people proud. It was long due for you. Though I personally believe you have done a lot better work in some of the bollywood movies (Roja, Bombay to name few) than Slumdog Millionare!!!