Ethics in Telecom Sector

1. ETHICSETHICS
ININ
TELECOMTELECOM
INDUSTRYINDUSTRY

2. ETHICS IN TELECOM INDUSTRY

3. 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.

4. 11STST
SUCCESS IN TARGETING MOBILESUCCESS 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.

5. ETHICAL ISSUESETHICAL 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.

6. ETHICAL ISSUES REGARDING PATENTS IN INDIAETHICAL ISSUES REGARDING PATENTS IN INDIA
• 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.

7. LOOPHOLES INLOOPHOLES IN
GOVERNMENT POLICIESGOVERNMENT POLICIES

8. 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.

9. POST RETIREMENT APPOINTMENT OFPOST RETIREMENT APPOINTMENT OF
FORMER TRAI OFFICIALSFORMER 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.

10. RELAXATION TO FOREIGN COMPANIES IN CASESRELAXATION TO FOREIGN COMPANIES IN CASES
OF DISPUTEOF 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).

11. ETHICAL ISSUESETHICAL 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

12. PHISHINGPHISHING
& OTHER ACTIVITIES& OTHER ACTIVITIES

13. 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.

14. 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.

15. 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.

16. TELECOM SCAMSTELECOM SCAMS
IN INDIAIN INDIA

17. 2G SPECTRUM SCAM2G 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.

18. 2G SPECTRUM SCAM2G 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.

19. CONSEQUENCIES OF 2G SPECTRUM SCAMCONSEQUENCIES 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.

20. 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.

21. ENVIRONMENTAL ISSUESENVIRONMENTAL ISSUES
DUE TO TELECOMDUE TO TELECOM

22. 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

23. RADIATION DUE TO MOBILE PHONESRADIATION 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.

24. FAVOR TO BIG HOUSESFAVOR 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.

25. ANY QUESTIONS ?

26. THANK YOU…