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Telecom equipment vendor Nokia Siemens Networks said Monday it has agreed to pay $1.2 billion for the majority of U.S.-based Motorola Inc.’s (MOT) network equipment business in order to gain a stronger foothold in the important North American and Japanese markets.

In a joint statement, the companies said they expect the all-cash deal to close by the end of 2010.

Nokia Siemens is making the acquisition primarily to boost its position in markets like the U.S. and Japan and gain access to new customers, but the deal will also provide economies of …

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The decision of the BJP government in
Karnataka to stand by the Reddy brothers is most likely driven by political
compulsion. The Reddy brothers reportedly have the support of more than 30
legislators who are needed to make up the numbers for the Yeddyurappa
government. However, the party may have lost precious public support by refusing
to take note of the allegations of corruption levelled against the brothers, who
run a mining empire in the state.

Given the serious charges of
illegal mining against the brothers, they should have been asked to step down
from their ministerial posts till they were cleared. The chief minister asserts
that the Reddy brothers are not responsible for illegal mining. But he has
promised a probe by the lokayukta into illegal mining since 2003. His assurance
is hardly convincing. One of the reasons cited by N Santosh Hegde, the lokayukta
of Karnataka, for his resignation from the post was non-cooperation from the
state government in his efforts to stem corruption. He has since withdrawn his
resignation but the charges he made against the government stay. Equally strong
have been the remarks made by governor H R Bhardwaj, who overreached his
constitutional role when he went public with his criticism. The Yeddyurappa
government owes the people an explanation. Such a short-sighted approach to
corruption could impact the partys image and long-term prospects in the
state.

What comes out of the present episode is the extraordinary
influence the mining lobby seems to have over the political system in Karnataka.
The Reddy brothers are not merely BJP leaders but state ministers with the means
to control the government. Time and again they have shown that they hold the key
to survival of the only BJP government in south India. Theyve been in electoral
politics for just a decade but in this short period they have made the BJP a
force to reckon with in their stronghold and consolidated their own political
clout.

Political instability in Jharkhand has been attributed to the
peddling of influence and mixing of private mining interests with state
politics. To ensure that Karnataka is not headed the same way the onus is on the
BJP, which must take most of the blame for allowing the Reddy brothers a free
run. But the Congress and the JD(S), which at this point of time are trying to
highlight corruption in the state, are not free of blame either. It is time the
political class recognises the need to regulate businesses so that doing
business legally becomes easier in the state.

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Businessmen want fulfillment of market access promise

LAHORE: The business community on Monday called upon US Secretary of State Hillary Clinton to give practical shape to the announcements she made earlier during her last visit to the country for providing direct market access for Pakistani products to US markets.

Iftikhar Ali Malik, the Pak-US Business Council founder chairman and SAARC Chamber of Commerce and Industry Pakistan Chapter vice president, told APP that Clinton, during her visit to Lahore and Islamabad in October 2009, made announcements to help stabilise the Pakistani economy by providing special concessions and direct market access, including long term investments in different sectors in Pakistan. “Pakistan is an emerging market, rich with opportunities for American investment, while the US is already an important trading partner,” he said, adding that the US Chamber of Commerce and the US-Pak Business Council could play a vital role in developing durable understanding by holding direct one-on-one interaction with traders, importers and exporters of both countries for sustainable economic growth coupled with promotion of trade on a fast track.

Iftikhar said that there was a vast scope for the US private-sector investors in Pakistan, particularly in the agricultural, power and IT sectors, adding that the US Chamber of Commerce can play a pivotal role in promoting bilateral trade relations.

He said that if the US was sincere with Pakistan in fighting terrorism, it must lift all economic restrictions on free flow of goods, and not impose duties, to fully facilitate the private sector of the country. He added that no action had so far been taken or reported from the US about any practical measures taken in this regard. “Due to the war against terrorism, Pakistan’s national economy is constantly suffering major losses. In the prevailing scenario, the US must provide immediate direct market access to Pakistani products on zero-rate duty to help stabilise the country’s economy instead of providing grants or aid,” he said. app

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