Shock and awe: Note ban, Jio launch, GST & other headline grabbers of 2016

Business Standard recaps the most prominent economic and corporate developments of the year

By almost any yardstick the year has been unique: Public policy, business rivalries and implosions, court verdicts and corporate malfeasance set new standards of shock and awe that will reverberate well into 2017.

Business Standard recaps the most prominent of economic corporate developments


Demonetisation

In terms of disruptive impact, this was a decision with few parallels in Indian policy-making. On November 8 evening, just as Donald Trump recorded an unlikely victory in the US presidential polls, Prime Minister Narendra Modi came on national television to announce the withdrawal of legal tender status to Rs 500 and Rs 1,000 notes, taking roughly 86 per cent of currency out of circulation. Citizens were given time till

December 30 to deposit old notes, but draconian withdrawal controls were put in place.

It was not just ordinary Indians who were caught unawares by this decision, which was initially explained as a route to staunching black money and terror finance. The government and Reserve Bank of India (RBI), too, seemed unprepared.  For one, the new Rs 500 and Rs 2,000 notes required over 100,000 ATMs to be recalibrated, an exercise that could not begin till after the announcement was made in the interests of confidentiality. For another, the assumptions on which the decision was made played out so differently in reality, that 60 notifications have been issued over one and a half months imposing new conditions or reversing other ones.  

The Reliance-Jio launch

The Tata-DoCoMo controversy

Goods and Services Tax

The RIL-ONGC spat

Nikesh Arora’s exit from SoftBank

The Singur verdict

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Reliance Jio call drops due to its under-preparedness: Airtel

Reliance Jio call drops due to its under-preparedness: Airtel

Airtel on Tuesday blamed Reliance Jio itself for network connectivity issues and call failures, saying they are due to Jio's own "under-preparedness", insufficient testing efforts and acquiring a large number of customers at the pre-launch stage itself.

In a letter to Reliance Jio, Airtel said: "While RJIO has continued to allege huge call failure on account of insufficient number of PoIs (points of interconnect), however, we believe that the prime reason for such callfailures was on account of acquisition of a large number of subscribers by RJIO even before the declaration of the commercial launch."

The letter, sent on Monday, goes on to say that augmentation of POIs based on actual traffic, necessitates a reciprocal action from the other party also.

"It is important to note, that despite our best efforts, the POIs are still in the process of augmentation due to issues at your end," Airtel said.

Airtel said that despite the prompt and colossal effort on its part, as on date, only 2,484 E1s (interconnect ports) are live out of a total capacity of 3,048 provided, primarily due to various reasons for delay "attributable solely to RJIO's under-preparedness and insufficient testing teams and efforts".

It added: "Even these capacities could be augmented with great persuasion by Airtel teams. During the augmentation exercise, your circles had cited issues with regard to Acceptance Testing, transmission media related concerns and hence the augmentation process took much longer and even till date the complete POI's have not been augmented due to unpreparedness of your teams." Read more

Regulator chains Free Basics

The telecom regulator on Monday struck down differential pricing for internet services offered by telecom players to mobile users, in a bid to uphold the principles of net neutrality.

This will be a big blow to Facebook’s Free Basics — and other zero-rated platforms such as Airtel Zero — for which the social media giant had launched an aggressive campaign in December last year.