New Delhi, March 4: The Union Government has decided to stick to the terms and conditions of the 1994 telecom licence agreement with private players, Department of Telecommunication secretary Anil Kumar said here on Thursday."Although we don't want to be dragged to court, we are bound by the obligations cast on us by the licencing agreement," Kumar said while addressing a meeting organised by the Confederation of Indian Industry (CII).Kumar said the Government was keen to resolve the issues and the group on telecom (GoT) was involved in framing a new telecom policy and finding solutions to problems of existing service providers.Resolving the problems for new players would be far more easier than in the case of existing players, Kumar said. He added that it was wrong on the part of operators, who were not doing well, to blame the policy framework for their current problems. He added that the GoT was looking into all issues concerning the telecom sector.
Kumar said the Government wanted the regulator toplay an effective role but the issue of regulation of service providers was getting mixed up with that of the licensor and causing lot of confusion.
Earlier, Telecom Regulatory Authority of India (TRAI) chairperson Ss Sodhi said the full potential of this sector could be seen only if an effective regulatory mechanism was put in place not only at the regional level but at the international level.
The growth of this industry in the last few years could give a very encouraging impression but this has not provided much cheers to the service providers.
Regarding international roaming, Sodhi said the system needed to be evolved in such a manner that national interests were not jeopardised.
US Ambassador to India Richard Celeste said India had all technical and intellectual capabilities to become a leader in global telecommunication but the fact remained that there were many unresolved issues. He urged the formation of a reasonable and workable licence fee and rationalisation of the duty structure. Celestesaid there was dramatic room for growth in the Indian telecom sector for which clear policies needed to be introduced."India has the capability to become a major telecom centre at a time when the global information economy is fast emerging," he told delegates at the Cellular Telecom Industry Association (CTIA) Cibernet wireless partnering conference held here.
The US-based CTIA is a leading international association for the wireless industry, representing top 200 carriers and manufacturers providing wireless services. President & CEO Tom Wheeler said India harbours a great future for wireless technologies. In the past two years, 12 lakh new wireless subscribers have been added.
In his welcome address, Vijai Kapur, chairman, CII committee on communications, said nearly 24 per cent of foreign direct investment since 1991 was in the telecom sector. He hoped the new telecom policy due this month-end would provide for more investment opportunities in this sector.Rajeev Chandrashekhar, chairman, COAI, painted agrim scenario and said the muddled policies were restricting the growth of the telecom sector in India.Big Indian corporates and the best multinationals are battling in courts, he said, adding that investors were losing $60 to 70 million every month due to this.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.