ETHICS ETHICS IN IN

TELECOM TELECOM INDUSTRYINDUSTRY

ETHICS IN TELECOM INDUSTRY

BACKGROUND OF THE SECTORBACKGROUND OF THE SECTOR• Indian Telecom Sector is one of the fastest

growing in the world. • Conducive Environment provided by TRAI • Competitive Environment for the players • Low Tariff Plans for the subscribers.• Major part of Wireless Subscribers (57%)

from urban regions, while 40% of subscribers from the Rural Area.

• Wireline subscribers diminishing to 2% and 1% in urban and rural areas respectively.

• Youth in India and the growing disposable income are the key drivers for the growth of the sector.

11STST SUCCESS IN TARGETING MOBILE SUCCESS IN TARGETING MOBILE SUBSCRIBERSSUBSCRIBERS• Reliance introduced a scheme in late 1990 to

increase the mobile subscribers pan India.• Affordable services and handsets were provided to

all. • A majorly successful mission. • Later the subscriber’s were found to be fake.• Fake documentations were provided. • A huge revenue loss for the company, due to

people’s misuse of the facility.

ETHICAL ISSUES ETHICAL ISSUES REGARDING PATENTSREGARDING PATENTS• Attempts to copy patents by Apple (Sued by Nokia) • Attempts to copy patents by Samsung (Sued by Apple) • All players included in the patent litigation cases. • In 2009, Nokia sues Apple over 10 patents. Apple countersues Nokia for 13 patents.• In 2010, Apple drops 4 patents from their countersuit against Nokia that are in ITC

compliant. • In 2011, Apple sues Samsung for patent & trademark infringements with the Galaxy line • In 2014, the $929 million judgement from the US trial Apple v/s. Samsung becomes

official. • In 2015, Microsoft sues Kyocera for patent infringement in U.S. federal court and seeks

an import ban on 3 Android smartphones.

ETHICAL ISSUES REGARDING PATENTS IN ETHICAL ISSUES REGARDING PATENTS IN INDIAINDIA• In March 2013, Ericsson filed a patent infringement suit

against Micromax, claiming Rs. 100 crore (Rs. 1 billion) in damages. Ericsson alleged that Micromax had infringed on 8 of its standard essential patents (SEPs) registered in India.

• The Delhi Court granted an ex-parte injunction restraining Micromax from selling, importing, or manufacturing mobile devices that implemented 3G, AMR and EDGE standards. Micromax and Ericsson later entered into an agreement in which the former would pay interim royalty.

• Ericsson v/s. Intex (2013) • Ericsson V/s. Gionee (2013) • Ericsson v/s. Xiaomi (Dec. 2014) • In March 2015, Ericsson sued Lava over its standard

essential patents relating to ATR, GSM & EDGE technologies.

LOOPHOLES IN GOVERNMENT LOOPHOLES IN GOVERNMENT POLICIES POLICIES

CALL DROPSCALL DROPS• Concerns over the implementation of telecom

regulator Trai's new rules regarding the compensation to consumers for call drops. 

• Under the rule, mobile users will get a compensation of Rs. 1 for every dropped call from Jan 1 but it will be limited to a maximum three dropped calls a day.

• The compensation will be given only if the call drop takes place due to the calling party’s network and not because of the receiving operator’s network.

• The decisions looks more favorable to operators than the consumers.

• The license conditions do not mandate operators to provide 100% coverage & also inside buildings.

POST RETIREMENT APPOINTMENT OF POST RETIREMENT APPOINTMENT OF FORMER TRAI OFFICIALS FORMER TRAI OFFICIALS

• Trai official, post retirement, is not barred from joining a group with business in telecom services, among others. For instance, the groups which own Reliance Jio, Bharti Airtel and Idea Cellular also have many other businesses where a former Trai official can join, as the person would not be directly employed by the telecom services company.

• The term as per the act for not joining any telecom organization is 2 years only. • The influence of the officials can remain on the ministry for a long time. • As the amendment specifically says “telecom services”, former Trai officials

might also not be barred from joining companies which provide passive infrastructure to telecom service companies.

RELAXATION TO FOREIGN COMPANIES RELAXATION TO FOREIGN COMPANIES IN CASES OF DISPUTEIN CASES OF DISPUTE• With the Hutch-Vodafone legal wrangle laying bare the legal loopholes in

India’s FDI rules, FIPB has asked the government to hold a complete review of FDI guidelines and tighten norms related to direct and indirect shareholding.

• India loses capital gain tax. • A huge revenue loss takes place when the foreign company sells its stake to

Indian company. • No effective legal action against the foreign company can be taken due to

indulgence of the foreign government (eg. British Government in Vodafone Case).

ETHICAL ISSUES ETHICAL ISSUES

• What personal information do the Telecom Companies in India collect?• How does Telecom Company in India use your Personal Information? • Sharing your Personal Information• Sharing your information outside India• Protecting your personal information• Internet use• Marketing Use• Changes to the Privacy Policy

PHISHING PHISHING & OTHER ACTIVITIES& OTHER ACTIVITIES

PHISHINGPHISHING• Phishing is an attempt by an individual or

group to solicit personal information from unsuspecting users by employing social engineering techniques.

• Phishing emails are crafted to appear as if they have been sent from a legitimate organization or known individual.

• These emails often attempt to entice users to click on a link that will take the user to a fraudulent website that appears legitimate.

• The user then may be asked to provide personal information, such as account usernames and passwords, that can further expose them to future compromises. Additionally, these fraudulent websites may contain malicious code.

PHISHINGPHISHING• Fraudsters are now using advanced

technology that has been successfully used for activities such as spam, distributed denial of service (DDoS), and electronic surveillance. 

• In a daring attempt, fictitious email was sent of reserve Bank of India asking for bank account details and password.

• Emails regarding winning of a lottery are sent to misguide the people.

• In UTI phishing case, the perpetrators took undue advantage of the name change of the UTI Bank to Axis Bank and asked people to inform their financial information.

MOBILE FRAUD CALLSMOBILE FRAUD CALLS• Fraud Calls in India asking for Credit Card

details are increasing. • The cyber crime is unable to detect these

numbers. • All such calls arise from the northern part

of the country, but no action has been taken by the government to tap such cases.

• Government can tap the satellite calls of terrorists, but unable to tap the fraud calls,

• Inefficiency of the telecom ministry, cyber cell lead to such unethical practices.

TELECOM SCAMS TELECOM SCAMS IN INDIAIN INDIA

2G SPECTRUM SCAM 2G SPECTRUM SCAM • The 2G spectrum scam was an Indian

telecommunications scam and political scandal in which politicians and officials under the Indian government undercharged mobile telephone companies for frequency allocation licenses, which they then used to create 2G spectrum ...

• Officials and Minister of Government of India involved in 2G Spectrum.

• Illegal undercharging mobile telephony companies for frequency allocation licenses.

• Rs.176,645 crore revenue loss. • Indian Income Department Investigated Political

lobbyist.

2G SPECTRUM SCAM 2G SPECTRUM SCAM • Entry Fee for spectrum licences in 2008 pegged

at 2001 prices. Mobile subscriber base had shot up to 350 million in 2008 from 4 million in 2001.

• NO procedure followed. • Rules changed after the game had begun.• Cut off the date for applications advanced by a

week.• Licenses issued on a first cum first served basis.• No proper auction process followed, no bids

invited.• Chief Authority Ignored the advice of TRAI, Law

and Finance Minster.• TRAI had recommend auctioning of spectrum at

market rates.

CONSEQUENCIES OF 2G SPECTRUM SCAM CONSEQUENCIES OF 2G SPECTRUM SCAM

• India was deprived from the valuable tax and huge loss (approximately 32 thousand crore).

• The India’s Goodwill has been reduce at international level.

• 2G Spectrum scam badly impacted on Indian Society.

• People lost trusts even in the honest person or minister or businessman or any telecom players because of the 2G Spectrum scam.

NIRA RADIA TAPES CONTROVERSYNIRA RADIA TAPES CONTROVERSY• The Radia tapes controversy relates to the

telephonic conversations between Nira Radia, a lobbyist and an acquaintance of the (then) Indian telecom minister A. Raja, and with senior journalists, politicians, and corporate houses,

taped by the Indian Income Tax Department in 2008–09. 

• Radia’s phone lines were tapper for over 300 days. • The tapes led to accusations of misconduct by many

of these people. Nira Radia used to run a public relations firm named Vaishnavi Communications,

whose clients include the Tata Teleservices and Mukesh Ambani’s Reliance Industries.

• The tapes appear to demonstrate how Radia attempted to use some media persons to influence the decision to appoint A. Raja as telecom minister.

ENVIRONMENTAL ISSUES ENVIRONMENTAL ISSUES DUE TO TELECOM DUE TO TELECOM

MOBILE PHONES & ENVIRONMENTMOBILE PHONES & ENVIRONMENT• Manufacture of a mobile phone produces about 60 kg of Carbon-

dioxide emission and that using a mobile phone for a year produces about 122 kg of Carbon-dioxide emission.

• The main impact associated with day to day mobile phone use is the power used during the charging process.

• If 10% of the world’s mobile phone users turned off their chargers after use, the energy saved in one year could power 60,000 European homes.

• Another negative outcome that occurs during the manufacturing process is the exposure of workers to toxic metals and chemicals.

• Transportation first to manufacturing plants, and then to distributers and customers generates more negative impacts on the environment due to the burning of fossil fuels. 

• Each phone consists of 500 to 1,000 components that must be shaped and fitted together in polluting factories (most are currently located in China). In one assessment, a group of Swiss researchers found that 40-50% of the environmental impacts over the entire life of a cell phone occur during the single process of manufacturing printed wiring boards and integrated circuits.

RADIATION DUE TO MOBILE PHONES RADIATION DUE TO MOBILE PHONES • Radiation during receiving voice or text messages may

mean significantly higher risks for brain and salivary tumors among those using cell phones for 10 years or longer.

• Lead, Mercury and cadmium found in personal electronic devices such as mobile phones can release dangerous toxins into our air and water when burned or deposited in landfills improperly.

• According to the EPA, lead taken into the body through the air, through contaminated groundwater or lead-contaminated food can accumulate in human bones. It can adversely affect the nervous system, kidney function, immune system, reproductive and developmental systems, and the cardiovascular system. It can cause significant risk to young children even at low levels; exposure to infants and young children can contribute to learning deficits and lowered IQ.

FAVOR TO BIG HOUSES FAVOR TO BIG HOUSES • Government amends laws or by-passes laws to favor big

industry leaders. • Environmental concerns are by-passed. E.g. Giving garden

space to Reliance for construction of Gio Tower. • For non-compliance of EMF standards, a penalty of Rs. 5

lakh is liable to be levied per BTS per service provider. • Bio-Initiative Report has been prepared by a group of

independent scientists after thorough and very careful survey of the literature and they concluded that the existing standards for public safety are inadequate to protect public health and proposed 1000 µW/m2 for outdoor, cumulative RF exposure.

• At many places, cell phone towers are mounted on the roof top of residential /commercial buildings. Even though antenna radiates less power vertically down but the distance between the antenna and top floor is usually a few meters, so the radiation level in the top two floors remain very high.

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