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There's
commerce. And then, there's commerce. That's the distinction India's
Supreme Court seems to have gone by when it ordered Ten Sports to
offer a live feed of the coverage of the India-Pakistan cricket
series to state-owned broadcaster Doordarshan (DD). For those who
came in late, in 2002 Dubai-based Taj Television, the company that
owns Ten Sports paid the Pakistan Cricket Board (PCB), $45 million
(Rs 216-crore at then exchange rates) for terrestrial, cable, and
direct-to-home television rights for all matches organised by the
board till 2007. Circa 2004, the company was hoping to leverage
the historic series, the first played by India in Pakistan in 15
years to bolster its sagging subscriptions. Only, Ten Sports seemed
to have discounted Doordarshan's clout and a 1995 ruling by the
Supreme Court. The public service broadcaster raised the issue of
public interest, and the court's interim order is in keeping with
the spirit of its February 9, 1995 judgement, where it stated that
a monopoly over broadcasting, whether by the government or by anybody
else was inconsistent with citizens' right to free speech.
Does public interest matter more than private
contractual obligations? It looks like it does. It is the spirit
behind several global declarations, including the World Trade Organisation's
Doha Declaration on trips (Trade Related aspects of Intellectual
Property rights) and Public Health. Sections 4 and 6 of the declaration
allow countries to overlook patents in the interests of public health.
The provision was most recently used by Kenya to procure azithromycin,
a new generation antibiotic on which Pfizer holds the patent. Health
is one thing, entertainment, another, although there is a school
of thought that, in India cricket is at once, both a religion and
a drug (opium of the masses, silly).
The government, clearly, buys that argument; it threw its weight
behind Doordarshan, although the channel is owned by Prasar Bharti,
a corporatised and ostensibly autonomous corporation. As this magazine
goes to press, the government is also considering a law that will
allow DD to telecast events of national importance, irrespective
of issues related to rights and ownership. Government's continually
intervene in broadcast-related issues.
As recently as December 2003, the European
Union convinced Europe's Premier League Football Association to
force BSkyB, the company with exclusive rights to all Premier League
matches till 2007 (what's it with 2007?) to part with some to a
rival broadcaster. The move is ostensibly targetted at breaking
Sky Sports' (BSkyB's sports channel) monopoly on European soccer
and ensuring choice for European subscribers who do not subscribe
to the DTH (direct to home) offering from the Murdoch-stable . And
even the format for Premier League, post 2007, is being altered
to include at least two competing broadcasters.
''The (Supreme Court's) ruling has damaged
our business, especially the every-day distribution-driven one,''
says Chris McDonald, CEO, Taj Television. For, while the court has
directed DD to deposit Rs 50 crore in lieu of damages that could
be suffered by Ten Sports, the channel believes the actual loss
could be over Rs 200 crore. Worse, the free availability of the
telecast will hurt its chances of increasing its subscription base.
Some broadcasters believe Ten Sports erred
in not understanding the significance of the series. ''The 1995
Supreme Court judgement puts airwaves as public property, and one
has to respect public sentiment,'' says Kunal Dasgupta, CEO, Sony
Entertainment Television India. ''Why, even we offer India-specific
matches to DD first,'' says the man who shelled out a whopping $225
million (Rs 1,035 crore) to International Cricket Council for television
rights of all ICC-organised tournaments till 2007.
If Indian courts classify cricket as 'public
interest' and condone, even sanction, the flouting of an international
corporate contract, then the Indian government will not have a leg
to stand on if US courts override private outsourcing contracts
citing the same 'public interest'. Maybe it is time for the government
to respect the complete 1995 order of the Supreme Court and create
a regulatory environment that balances public interest with the
profit-minded motives of companies.
NEWSMAKER
Ramesh Gelli, 58
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Ramesh Gelli: On how to be talk to the
town |
Here's a sure-fire
recipe to make the news. Step 1: Rejoin the board of the company
you founded after quitting it under a cloud. Step 2: Drop hints
about your desire to enter politics. Step 3: Create a turnaround
fund with a corpus of Rs 100 crore. Step 4: Resign from the board,
again. Step 5: Say, "Politics? Who? Me?". The only caveat:
everything has to happen in the span of a month. That's exactly
what Ramesh Gelli has done. His decision to re-resign from the board
of Global Trust Bank-he founded it in 1994, still holds a 20 per
cent stake in it, and his son Girish Gelli sits on the board-was
prompted, he insists, by the need to devote more time to the turnaround
fund which has, if he is to be believed, taken on a life of its
own. "The earlier plan was to get it up and running by September,
October," says Gelli. "Now, I think we may be able to
make it operational by June, July; we have received three serious
proposals from investors keen to participate (in the fund) and six
requests seeking assistance." Once among the most respected
bankers in the country, Gelli believes "genuine entrepreneurs
and good projects" sometimes flounder "for want of appropriate
management inputs or funds". So, is it curtains for his short-lived
flirtation with politics? Not really says Gelli. "In my view,
the Rajya Sabha route may be more suited to professionals; I could
consider that if I find any party seeing room for professionals."
But, as the man himself adds, "the Rajya Sabha is an opportunity
only after the elections''. Is Chandrababu Naidu listening?
-E. Kumar Sharma
IT's
Next Wave
Business Process management is it.
Business
process management (BPM) is the new buzzword in it. Ahem! Wasn't
it called Business Process re-engineering in the early nineties?
Yes it was, and it meant overhauling all of a company's processes,
documenting them in thick spiral-bound volumes, and spending the
next three years encoding them into new it systems.
Many companies are now re-organising themselves
as processes (and sub-processes) and digitising these into workflows.
The advantage? You can take one process at a time and effect change.
''At the height of the dotcom boom, companies were scared of getting
Amazoned. But now they are more in danger of getting General Electrified,''
say authors Howard Smith and Peter Fingar in their book Business
Process Management, the Third Wave, holding up GE-the company has
boosted its spending on it even as other companies have slashed
theirs, convinced that its efforts at digitising business processes
would pay off big in the future-as the (repeat: the) company to
emulate.
BPM will be the setting for the next big battle
in the IT domain: Microsoft, IBM and even Infosys will compete for
a foothold in the space. Some say this is the next big change in
enterprise software after relational databases.
We concur.
-Vidya Viswanathan
GOOD NEWS
Biocon B(l)oom
»
The government allows Non-Resident
Indians to invest in its new pension scheme targeted at both the
organised and the unorganised sector.
»
The public issue of India's premier biotech company Biocon is oversubscribed
almost 33 times.
»
The index for six core infrastructure industries registers a 11.3
per cent growth, year-on-year, in February 2004.
-Ashish Gupta
CHIPTALK
IT's RFID Wind
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Benoit Gaucherin: Hearlding a new revolution |
When software services companies start talking
about a new technology, you know it is more than vapourware. So,
when Benoit Gaucherin, the CTO of it services company, Sapient,
held forth recently on RFID (radio frequency ID) tags, one listened.
These chips, which have antennae that can be read and written onto
by a computer that bounces radio waves a few meters, are now cheap
enough to be tagged on to just about anything-from airline baggage
to a carton of milk to tyres to hospital patients.
In fact, Michelin has already taken to tagging
its tyres to respond better to a Ford/Firestone-like situation.
In other words, what we are talking about is a supply chain revolution,
where data is made available real time. "Wal-Mart already requires
its 100 major supplies to tag containers with these chips by 2005,"
says Gaucherin, who has been working alongwith RFID start-ups such
as Embrace and ThingMagic for the last two years.
All this, of course, means several processes
change and that translates to a lot of work for the IT services
companies. Do we see the Infosys and Wipros laughing all the way
to the bank?
-Vidya Viswanathan
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