Some parts of India are so far removed from the telecom mainstream that no one actually cares

Praveen Kumar, a Patna-based marketing professional is a convert to BSNL's CellOne cellular service. Since the state-owned megalith launched its services in Bihar five months ago, Kumar has, time and again, considered shifting from his pre-paid Reliance connection, but inertia prevented him from going through with the act. Then, his mother needed to be hospitalised for eight days, he spent close to Rs 3,800 on recharge coupons for his connection, although much of the talktime was spent answering incoming calls from other mobile phones- something that is free in metros and all circles referred to as category A, essentially the rich states. That hurt, and Kumar moved to CellOne.

Far removed from India's telecom mainstream, customers in states such as Bihar, Orissa, West Bengal (with the exception of Kolkata), and Assam and the North East, make do with high tariffs and a poor quality of service. In February 2003, the highest cellular tariff in these states stood at Rs 3 a minute, irrespective of whether it was incoming or outgoing. That, in itself, is an improvement over the Rs 4 a minute for outgoing and Rs 5.40 a minute for incoming calls that customers in these states were being charged last May. The new 'lower' rates are a result of competition-bsnl launched its CellOne service in these states last year and straightaway offered the option of free incoming calls on one of its schemes besides lower peak tariffs.

Then, there's the quality of service as experienced firsthand by this writer on a recent visit to Bihar. Networks follow a strict code of civility and keep out of most homes. And where they are present, they aren't intrusive-the signal is as weak as can be without not being there at all. Much of this can be attributed to the fact that Reliance was, until BSNL made its entry, the only operator in these states, the only ones it won in the first round of bidding for cellular licences. Now, the company's resources are focussed on rolling out a pan-Indian CDMA-based mobile service. (Reliance did not respond to BT's queries).

In the first two months of this year, BSNL sold 90,025 cellular connections in Bihar, Orissa, and West Bengal (it has not launched its services in Assam and the North East), as compared to the 29,251 Reliance added in all five. But other telcos are wary of entering India's telecom wasteland. There were no takers for the dozen-odd licences the government put up for auction last month. Rajeev Chandrasekhar, the Chairman of the Cellular Operators Association of India attributes that to the on-going litigation over basic licence holders providing limited mobile services, but as one Hutchison exec puts it, "Where is the market" in these states? A recent study by the company discovered that Mumbai borough Andheri is a bigger market for cellular telephony than the city of Kanpur in Uttar Pradesh. Dispur, Kohima, or Motihari don't even figure in such studies.

-Suveen K. Sinha

Bull In Apollo's Shop
Harshad Mehta's stake in Apollo is finally open to buyers.

Onkar Singh Kanwar: Bidding time

Although dead for more than a year now, one-time Big Bull, Harshad Mehta, continues to cast a shadow over Apollo Tyres, one of his favourite companies. The 15 per cent equity in the Delhi-based tyre company once held by Mehta but vested with a court-appointed custodian for the last nine years, finally goes under the hammer this month. For Apollo's Onkar Singh Kanwar that's a whole lot of unnecessary stress. Although Singh Kanwar, who controls 37 per cent of the company's equity, has the first right of refusal for the 56.5 lakh shares, he must match the price offered by the highest bidder. And that could be as high as Rs 70 crore at current prices or more if a control premium is built in for the 15 per cent stake. In case he chooses to forego the right, the shares would be sold to the highest bidder, who would also have the option of making an open offer for another 20 per cent. That should bring the buyer's-which could include a rival like MRF, although the Chennai-based company denies any such plans at this point-stake dangerously close to that of Singh Kanwar. Apollo's spokesperson Harshita Patel, however, pooh-poohs any worries on this front, saying that the company will take action at the appropriate time. The deadline for bids is April 25. In any case, 2003 is likely to be a landmark year for Apollo. Its revenue, Neeraj Kanwar, its coo says, have crossed the Rs 2,000-crore mark for the year ended March, 2003. Still, Singh Kanwar would have been happier without the 15 per cent vexation.

-Debojyoti Chatterjee

Executive Tracking
A veteran quits for greener pastures-and a much-deserved breather.

Vivek Jetley: Time for a break

After 14 long years with Anajlit Singh's Max group, Vivek Jetley is finally calling it a day. The 45-year-old Jetley was the Managing Director of Max Ateev, an IT solutions company that Singh decided to shutter last October. Jetley, who started out at Tata Engineering at the age of 21 and went on to work with Escorts as Deputy Manager (Finance), had a meteoric rise at Max. Now, he would like to take a full year's breather before plunging back into something that suits his multi-industry experience. ''Last three to four years, I've been travelling three weeks a month, and now I am learning things about my kids that I didn't even know,'' says Jetley B. Anantharaman, Group Finance Director, Max India, has taken charge of the it business.

Meanwhile, the Rs 696-crore Marico Industries has lost its Executive Director and Chief Operating Officer, Jaspal Bajwa, who quit within five months of joining. This comes close on the heels of a profit warning issued by the company for Q4 2003. Bajwa's induction was seen as a part of structural reorganisation within the company. Bajwa, say headhunters, returns to Canada due to ill health. And former Chief of Sales and Marketing at Escotel, Rajeev Burman, joins Tata Teleservices as coo, after a year in the wilderness.

-Moinak Mitra

Doctor MBAs
Medicine and management is suddenly a hot mix.

Dr Pushwaz Virk, FMS: Mixing medicine with business

IIM-A has graduated three of them in the last two years. IIM-C, four. Indore and Lucknow, one and two, respectively. And the Delhi University's Faculty of Management Studies (FMS) even reserves seats for 15 of them. We are talking about medical doctors, some of whom are beginning to think that a management degree may be, well, just what the doctor ordered. ''With the healthcare and health insurance sectors expanding, we are seeing a changing trend in management education,'' says M.L. Singla, a professor at FMS. So, are the docs making more than the engineers on B-school campuses? ''Definitely. Even engineer-MBAs in sunrise sectors earn 30 per cent less than their doctor-MBA counterparts,'' avers Sridhar Ganesan of Watson Wyatt. Probably like Deepti Prasad, a 32-year-old grad of the Indian School of Business, whose new avatar at Dr. Reddy's Labs is that of brand manager. ''In my new role, the hike is nearly 100 per cent,'' she says. Talk about a shot in the arm.

-Moinak Mitra

DASH BOARD

A+
This magazine has its views on Best Cities surveys. After all, BT was the pioneer and still carries its Best Cities survey every other year. CII recently sent out a release listing the highlights of a Best Cities study it had commissioned. Delhi tops the list. Truth be told, it boasts better infrastructure than most other cities. Capital!

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If there were a test for the Health Minister's job, Sushma Swaraj would flunk it hands own. Her idea of preparedness to combat the SARS epidemic: send suspected passengers arriving at New Delhi's international airport to a run-down hospital on the city outskirts. The clincher: she hasn't visited the hosp.

Cellular Conjurors
Mobile phone companies entice subscribers with a cut-rate long-distance offer.

Calling rates: It's actually not a steal

Sometimes, when things sound too good to be true, they usually are. Like the 35 paise-a-minute long distance calls from India's mobile phone operators. For starters, the ''conditions apply'' phrase could mean that there are significant hidden costs at such a rate. This could be in the form of a huge up-front commitment fee as is the case with Reliance Infocomm's limited mobility service, which promises to offer long-distance calls at 40 paise a minute on its own network.

Then, there is the regulatory authority, which has mandated that all long-distance companies-cellular phone companies must rely on them to carry inter-circle calls-have to receive at least 45 paise per minute (and a max of Rs 1.10 per cent per minute) starting May 1, 2003. The 35-paise rate, if it is standalone, would not pass the regulatory test.

If the will operators-particularly Reliance-lose the ongoing court battle over the scope and price of will service, they may be forced to increase their benchmark rate. And since the cellular operators' 35 paise offer is essentially in response to Reliance's 40-paise bait, their cut-rate deal may not fructify. ''Make sure you check the fine print,'' says a nonplussed Prithipal Singh, Chairman and Managing Director of BSNL. But in telecom, one can never rule out miracles.

-Vandana Gombar