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Sunday, November 10, 2013

Telecom M&A rules to be announced this week: Sibal

The government may finally announce much awaited, first-ever policy on mergers and acquisitions for the telecom sector this week. “It (Mergers and acquisition guidelines) has been cleared by Telecom Commission. We will announce it any day now. Probably in coming week,” Telecom Minister Kapil Sibal told PTI. Inter-ministerial panel Telecom Commission on November 6 approved the guidelines which will allow telecom companies to acquire operators in a manner that market share of the resultant entity does not exceed 50 percent. 

The M&A policy is expected to further infuse investment in the sector. The M&A policy is expected to further infuse investment in the sector. India’s telecom sector, which has 13 mobile service providers, is expected to see consolidation as some of them under huge debts and unable to generate profits may look to exit the market. Vodafone India, which has around 17.8 percent market share, has already said it has strong financial condition to acquire another company. “I think 4 to 5, may be if you include state operators then 6, is the maximum (number of operators) that this market can have. 

It means where we see nine today, major 3 to 4 (service providers) need to consolidate in one way or the other,” Vodafone India’s Managing Director and Chief Executive Officer Martin Pieters has earlier said. Last month, Bharti group Chairman Sunil Mittal also said that Airtel will look at opportunities to acquire another firm in India, provided that there is a clear M&A policy in place.

Read more at: http://www.firstpost.com/business/telecom-ma-rules-to-be-announced-this-week-sibal-1221169.html?utm_source=ref_article

Australian PM Tony Abbott asked to join Colombo summit boycott

Australia's prime minister was under mounting pressure Monday to join his Indian and Canadian counterparts in boycotting a British Commonwealth summitin Sri Lanka this week over concerns about the island nation's human rights record.

India announced Sunday that Prime MinisterManmohan Singh will be the second leader after Canadian Prime Minister Stephen Harper to boycott the Nov. 15-17 meeting. There are 54 members of the Commonwealth, a loose association of former British colonies.

Australian Senator Lee Rhiannon called on Prime Minister Tony Abbott to boycott the meeting after she and New Zealand lawmaker Jan Logie were prevented from holding a press conference on human rights issues in Colombo on Sunday by immigration officials who seized their passports and took them to their hotels for three hours of questioning.

Rhiannon, whose Greens party is not part of Australia's conservative coalition government, described the treatment as ``unlawful,'' given she had an appropriate tourist visa and a letter from Australia's Department of Foreign Affairs and Trade to the Sri Lankan government explaining her trip.

``I was very concerned that my liberty was denied to me for more than three hours,'' Rhiannon told reporters at Sydney Airport on Monday after arriving from Colombo.

She said the Australian delegation to the summit ``should not be headed by Mr. Abbott as prime minister.'' Abbott's office did not immediately respond to the incident on Monday.

Human rights group Amnesty International said Rhiannon's detention confirms a pattern of continuing human rights abuses in Sri Lanka.

The APNZ news service reported that Logie said she was safe after her detention.

The decisions by the Indian and Canadian leaders to not attend the summit is expected to sharpen the focus on demands by Western nations and rights activists that Sri Lanka account for thousands of civilians who are suspected to have died in the final months of a quarter-century civil war that that ended in 2009 when government forces crushed separatist Tamil rebels.

Singh sent a letter to Sri Lankan President Mahinda Rajapaksa expressing his inability to attend the summit, said Syed Akbaruddin, the External Affairs Ministry spokesman. He did not divulge the contents of the letter.

External Affairs Minister Salman Khurshid will represent India at the summit, Akbaruddin said.

India, which has a major interest in the issue because southern India is home to 60 million Tamils, has been urging Sri Lanka's government to resume negotiations with an ethnic Tamil party on increased local autonomy for Tamils.

After the war, Rajapaksa promised to allow a greater degree of autonomy in Tamil-majority regions in the north. However, he has been criticized by foreign countries and rights groups for failing to deliver on his promises.

Harper said last month that Canada was disturbed by ongoing reports of intimidation and incarceration of political leaders and journalists, harassment of minorities, reported disappearances and allegations of extrajudicial killings.

US ready to risk Israel, Saudi Arabia wrath to seal Iran deal

The United States remains ready to upset key allies Israel and Saudi Arabia by securing a swift nuclear deal with Iran despite the failure of talks in Geneva, US-based analysts said Sunday.

While Tehran remained under the greatest pressure to reach a speedy deal with the major powers, they said, Washington was anxious to take advantage of Iran's willingness to negotiate an accord and avert future conflict in the Middle East.

Three grueling days of discussions between Iran, the United States, China, Russia, Britain, France and Germany ended early Sunday without agreement.

The parties had been hoping to broker an accord that would curb Tehran's nuclear program in exchange for sanctions relief.

By searching for a deal in Geneva, the US was "maybe trying to go a little too far, too fast, but they were induced by the Iranian enthusiasm," according to Hussein Ibish, a senior fellow at the American Task Force on Palestine.

"It is really the convergence of US and Iranian desires to avoid an even deeper confrontation over the nuclear file that makes an agreement possible at this stage," he added, citing the 10-year impasse concerning the nuclear program, which Western powers suspect of being geared towards producing an atomic bomb rather than peaceful civilian uses.

Alireza Nader, a senior international policy analyst at the RAND Corporation think-tank, questioned the suggestion that the United States was "rushing" to reach a deal at any cost with Iran, with whom it has had no diplomatic relations since 1980.

Despite the historic phone call between US President Barack Obama and Iranian counterpart Hassan Rouhani at the end of September, any improvement in relations between the two sides must continue to be viewed in the context of the decades of mistrust and animosity that preceded it.

However, it was the clear the the United States was keen on reaching an agreement in Geneva, because a "a deal as a first step (provides) an opportunity to stop Iran from moving towards a nuclear weapons breakout capability."

Nader said the Obama administration had always favored a diplomatic solution to the nuclear stand-off.

"I don't think the US position has changed in the last few months," Nader said. "What we have seen now is the willingness by Iran to negotiate."

Iran was keen to see an easing crippling sanctions, notably restrictions, which have frozen overseas assets worth several billion dollars.

US Secretary of State John Kerry meanwhile defended Washington against the accusation that it was pursuing a deal with Tehran at all costs.

"We are not blind, and I don't think we're stupid," Kerry said.

He also sent a new message to Israel and Saudi Arabia, who have grown increasingly alarmed at the warming of US-Iranian ties, saying Washington had a "pretty strong sense of how to measure whether or not we are acting in the interests of our country and of the globe, and particularly of our allies like Israel and Gulf States."

Analysts are adamant that Israel and Saudi Arabia remain resolutely opposed to any deal between Washington and Tehran.

"Both the Israelis and the Saudis have indicated publicly they want the United States to go to war with Iran," said Trita Parsi, president of the National Iranian American Council.

"If there is a deal, there will not be a war, that's why they are upset."

RAND Corporation expert Nader also noted the "anxiety" of Israel and Saudi Arabia, who likely feared that a US-Iran deal would be harmful to their long-term strategic interests.

"They are worried about Iranian-American relations improving to their detriment," Nader said. The possibility of Iran playing a bigger role in regional affairs "creates anxiety for Israel and Saudi Arabia."

Israeli Prime Minister Benjamin Netanyahu said Sunday Israel would do all it could to "convince world powers to avoid a bad deal."

American Task Force on Palestine expert Ibish said Gulf states already "seem to be concluding, with alarm, that the US is morphing from the guarantor of regional stability to a broker of unsatisfactory and tenuous agreements with regimes that should be confronted or contained."

"The Saudis and other Gulf states are starting to ask the question 'Why does the US seem to be developing a panel of rewarding its enemies and punishing its friends?'"

U.S. Tries to Rekindle Iran Deal After Miscues

A series of miscalculations by the Obama administration and world powers were behind a failure to complete a first-stage agreement to curb Iran's nuclear program this weekend despite days of rising expectations of a deal, said diplomats involved in the process.

Washington sought to take the developments in stride, quickly moving to salvage a deal by dispatching senior American diplomats to Israel and the Persian Gulf to try to win over skeptical allies and show the delay could lead to a better agreement with Tehran.

"We are not blind, and I don't think we're stupid," Secretary of State John Kerry said on NBC's "Meet the Press" on Sunday. "I think we have a pretty strong sense of how to measure whether or not we are acting in the interests of our country and of the globe."

Chief international diplomats agreed that negotiators would meet again in 10 days, an indication that they expect to build on momentum from promising moments during the weekend's meetings in Switzerland. Unlike the final two days of last week's talks, however, negotiations will be conducted by senior officials, not foreign ministers.

The talks in Geneva stumbled at an ambitious moment because of developments that were unforeseen by top officials from the U.S., U.K., France, Germany, Russia, China and Iran, the diplomats said.

One was the intractability of Israel's opposition. While Washington and other powers were well aware of Israel's deep antipathy to a deal, they didn't expect Prime Minister Benjamin Netanyahu to campaign to scuttle it by lobbying leaders around the world as diplomats met in Geneva, diplomats said.

Similarly, despite France's difficult history with Iran, diplomats said they didn't expect the French foreign minister to go public with a warning of a "fool's game" just as negotiations reached a critical point on Saturday.

The talks also were hamstrung by what many diplomats saw as shortcomings in the accord being considered. The proposed initial deal failed to address potentially dangerous elements posed by Iran's expanding nuclear program—in particular, Tehran's heavy water reactor in the city of Arak, which will be able to produce plutonium when it begins operating as early as next year.

Iran might not begin producing plutonium usable in weapons for more than a year after it begins operations, say nuclear experts. U.S. officials stress, meanwhile, that they don't believe Tehran has built a reprocessing facility that would allow it to harvest plutonium from the reactor's spent fuel.

Still, in recent months, as the start date for Arak has grown closer, U.S. and European officials have increasingly worried that they could be nearing a point of no return for Tehran's nuclear program.

Any possibility of using military force to halt Arak's construction is considered problematic once Iranian engineers begin feeding nuclear fuel into the reactor. An attack at that point would cause an environmental disaster if nuclear waste were to be discharged.

As it grapples with those issues, the Obama administration faces resistance not only from Israel, but from Israel's allies in the U.S. Congress. Democrats and Republicans in the Senate have voiced support for passage of new sanctions against Iran, and a bill that would do so is awaiting action before the Senate Banking Committee.

Sen. Robert Menendez (D., N.J.) — who also is a member of the Banking Committee, which would vote first on the bill—said Sunday that heftier sanctions are possible, with the provision that they would cease if an acceptable deal were reached.

"It's insurance for the United States to make sure that Iran actually complies with an agreement that we would want to see, which is of course desirable," he said on ABC's "This Week."

The talks in Geneva—conducted by the five permanent members of the United Nations Security Council, plus Germany, a bloc known as the P5+1—appeared to lurch ahead when Secretary of State John Kerry and other top-ranking diplomats began to arrive on Friday. That fueled the perception that an accord was imminent.

The optimistic tone faded when French Foreign Minister Laurent Fabius began to question the deal's contents. Among the P5+1 countries, France, along with the U.K. and Germany, has had the most extensive experience negotiating with Iran over its nuclear program. The three countries conducted two years of ultimately unsuccessful talks with Tehran from 2003-2004, leaving many senior French diplomats deeply suspicious about Iran's sincerity. Tehran blamed the U.S. for scuttling that deal.

Iranian and Western diplomats said they were broadsided when Mr. Fabius broke diplomatic protocol and told French radio Saturday afternoon that Paris wouldn't accept a deal with inadequate mechanisms for limiting Iran's ability both to enrich uranium and to bring the Arak facility online.

Diplomats in the P5+1 said Mr. Fabius's interview broke an agreement among the parties not to publicly discuss the details of the negotiations. U.S. and European officials didn't challenge the merits of Mr. Fabius's arguments. But he took a demanding position among the negotiating countries, according to a Western diplomat.

Mr. Fabius was quickly backed up by Mr. Netanyahu. Mr. Kerry had sought unsuccessfully earlier in the week to gain the Israeli leader's support for talks, but Mr. Netanyahu publicly warned that Israel wasn't obligated to abide by any agreement.

On Saturday, Mr. Netanyahu increased the pressure. He called the leaders of the U.K., Russia, Germany and the Netherlands and argued against accepting the current deal with Iran. "I asked the leaders: What's the rush? I suggested to wait," Mr. Netanyahu told Israeli reporters.

As hopes for an agreement started to fade, Mr. Kerry redoubled his efforts late Saturday. U.S. officials took to email and Twitter messages to advise reporters that a deal wasn't dead. And European leaders said there was still 50-50 chance.

Mr. Kerry also continued to reach out to Iranian Foreign Minister Javad Zarif.

Ultimately, diplomats said they still hadn't gotten the assurances they needed from the Iranians. And they sought to maintain unity amongst the P5+1, particularly France. "We worked very closely with the French," Mr. Kerry told reporters as the negotiation ended at 1 a.m. on Sunday.

A senior negotiator involved in the three days of talks in Geneva, said: "The other side [Iran] is trying to blame France, as it suits a game plan. But the truth is that we made a lot of very concrete progress, but not enough for a good deal that holds."

Washington is continuing to try and salvage a diplomatic initiative that could define President Barack Obama's foreign policy legacy. Mr. Kerry dined with the crown prince of the United Arab Emirates in Abu Dhabi Sunday in another attempt to gain support from skeptical Persian Gulf states. The U.S. lead negotiator, Wendy Sherman, traveled to Israel to confer with Mr. Netanyahu.

And Mr. Fabius's office challenged the perception that France was seeking to torpedo an agreement with Iran.

"We are not far from an accord. We have made progress, but we still have work to do," a senior French official said Sunday.