A sub-group on telecom policy, appointed by the prime minister's office, has been labouring on getting the policy objectives right. Available reports suggest that the sub-group has got its act together. It wants Trai to inherit DoT's powers and ease licensing conditions to ensure viability of new telecom operators. All this is fine. But the substantive issue is for the Government to come out with a telecom policy that will make the sub-group's recommendations workable. More importantly, the policy must pass muster with Parliament for, at the end of the day, radical legal enactments will be needed.

To be sure, the PMO's sub-group is on the right track. But it is not as if the sub-group can negotiate with DoT to make telecom privatisation work, or make it shed its powers in favour of Trai. Cutting down DoT to size is the job of the policy maker. Nor can the sub-groupget the Trai to accelerate the pace of telecom development (consistent with fast-changing technology) without the Government conferring that role on Trai. The new telecom policy should let Trai develop the footwork to ensure telecom development with competitive viability. This will require the Government to retreat from telecom. Trai will be the policy-maker under privatisation. Finally, policy must decide whether or not to address how disparate telecom development among states (bequeathed by DoT) should be redressed.