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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (64265)	5/25/2005 10:30:14 PM
From: arun gera	Read Replies (1) \| Respond to of 74559

>I doubt that Europe and USA governments even know about the division of spectrum between GSM and CDMA in India and if they do, couldn't care less.> Are you saying that the same govts. know nothing about Airbus and Boeing? Military equipment and air spectrum are few of the levers that the governments hold. (Didn't we have a Military Powell and an FCC Powell combo in the USA recently?) -Arun

To: Maurice Winn who wrote (64265)	5/26/2005 9:28:44 AM
From: arun gera	Read Replies (2) \| Respond to of 74559

Maurice: The policy makers in the federal government civil services in India and China, hire better talent than the US Civil services. And the politicians are more willing to listen to them than before. I have noticed that the Indian govt. is slowly disinvesting from the Govt. owned companies and encouraging at least a duopoly of Indian private companies in each of the key infrastructure sectors. It seems to be avery conscious decision. The general strategy seems to be: 1. Introduce at least two private indian companies of significant size to markets where there is currently only one Govt. owned company. This puts some fear in the Govt. owned company to improve itself. 2. Continue to protect the govt. owned company enough so that the two private companies do not destroy it. 3. Continue to protect the Indian companies till they are large and efficient enough to compete with multi-nationals when the market opens up to multi-nationals. 4. Example 1 - Banking. Old nationalized banks are still in the business and continue their inefficient and bureacratic ways. Over last 20 years two or three semi govt owned merchant banks with more autonomy have been encouraged - ICICI and HDFC. These are competing fairly well in the demanding sectors, offering the same services as the multinationals like HSBC and Citibank, but at lower costs. 5. Example 2 - Airlines - Air India and Indian Airlines continue to be controlled by the govt. Can be used to play Europe versus USA (and to line politicians pockets). If you don't give India the right military gear, the next order may go to Airbus. Introduced private domestic airlines such as Jet Air , Sahara (many others were born and went out of business). Jet Air and Sahara are only a few years old, but probably provide the best service amoing domestic airlines in any country. Next month Jet Air flies international routes. 6. Example 3 - Telecommunication - VSNL, MTNL floated in the US. Reliance and Tatas encouraged to fight the original GSM multinationals who were allowed to enter India. The GSM companies and their partnerships kept prices high and penetration low. Used junk band CDMA to encourage relaiance and Tata to establish themselves. Kept BSNL under govt. control. When GSM providers disallowed calls from Reliance and Tata customers initially, BSNL cut off cell phone interconnectivity from GSM customesr in retaliation. Brought the GSm players to the negotiating table really fast. -Arun >Arun, I think it must be more of a balance between companies, bureaucracy, democratic bribery principles and self-dealing by officials, combined, as usual, with silly ideas on how to run a railroad.>