Tata among Indian telcos implicated in spectrum scandal *****

The latest twist in India's well-publicised 2G spectrum scam case has revealed damning evidence against a clutch of Indian telecommunication companies, one of whom is looking to work with Bangladeshi companies in setting up the International Terrestrial Cable (ITC) system and services, reports UNB. Last week, India's Central Bureau of Investigations (CBI) told the country's Supreme Court that days before they got spectrum licenses in January 2008, 4 telecom companies, including Tata Tele Services, donated huge amounts of money to a Chennai-based cultural NGO with links to then-telecom minister A Raja's Dravida Munnetra Kazhagam (DMK) Party. The Indian Supreme Court has ordered an inquiry following the disclosure, according to which Tata Tele Services paid Rs 25 lakh to the NGO in question- Chennai Sangamam- on January 5, 2008. On the same day, Unitech paid Rs 50 lakh to the same NGO. On January 7, 2008, three days before the licenses were awarded, Reliance Capital paid Rs 25 lakh to Chennai Sangamam through a cheque, and Shyam Telecom paid Rs 1 lakh through two cheques of equal amount. Telecom industry insiders said Tata Tele Services is looking to enter the Bangladesh market through partnering Bangladeshi companies in setting up the international terrestrial cable system and services between Bangladesh and India, which will allow direct terrestrial connectivity between the two countries, and benefit international business and consumers by providing a low-latency alternative cable route, bringing down costs in the process. Tata Tele Services have partnered with 4 different Bangladeshi companies bidding for the license to build and operate the ITC from the Bangladesh Telecommunication Regulatory Commission (BTRC).