eFE INTERVIEW — Pramod Mahajan, Union minister for IT and telecom

‘More NLD operators will enter market soon’

Pramod Mahajan

Telecom had everyone talking in the year gone by, with new telecom ventures being announced even as the rest of the whole economy was reeling under recession. IT had a bad year, but things are beginning to look up with India’s postion as an offshore software development destination becomes stronger. And hogging the spotlight during the year was Minister of IT Pramod Mahajan who, after taking charge of the communications ministry, merged the two. In an exclusive interview with Neeraja Kumar and Ashu Kumar of The Financial Express, Mr Mahajan talks about the year gone by and his vision for the next year. Excerpts:

What is in store for the future? What major policy announcements can we expect in the next year? What is your vision for telecommunications for the nation?
The reforms initiated this year will start delivering results with further competition in cellular and basic services. The consumer will be king and will be able to choose an affordable service suiting his pocket.
As far as major policy announcements are concerned, Internet telephony will be opened up and ILD operators are likely to be in place in the year 2002. More NLD operators will also enter the market.
The vision for telecom in the nation does not stop at simple telephone connection but with cyber-cafe type facilities all over the country with IT revolution, just like the PCO revolution of the early 90s.

Tariff rebalancing is scheduled to happen in April, 2002. How far should this be carried. Would the government put an additional burden on the common man in the form of higher local call tariffs and monthly rentals?
All economic reforms lead to an end of cross-subsidisation. Tariff rebalancing will result in reduction in long distance tariff.

The beneficiary must bear the cost of service. Cost unbundling exercise will be undertaken and some cost readjustment in local calls may be called for.

Private operators are demanding that the rebalancing exercise be rushed, so that the benefit of mobile STD rate cuts could be passed on the subscribers of basic operators as well. Your comments.

The NLD policy mandates that the benefit of competition should be available to the subscriber. Tariff fixing is within the purview of Trai and it will doubtless consider the development in the industry while finalizing suitable tariff at appropriate time. Operators are free to give concessional tariff packages with the approval of Trai unless floor is prescribed as in case of limited mobile service.

Do we see direct interconnection — which has been a long standing demand of the private operators being allowed between states in the year 2002?
Direct interconnection between the states has not been permitted so that the NLD operations become viable. There is no reason to change the policy at this juncture. However, as per the recommendations of Trai, direct interconnection between ILD operator and the Access Provider has already been permitted.

What were the major achievements in the telecom sector during the year 2001?
The telecom sector has grown tremendously in terms of the subscriber base — today we have around 4 crore subscribers in the country — 3.49 crore basic service subscribers and more than 50 lakh cellular subscribers.

17 licences were granted for fourth cellular operator in 17 circles and 25 new licences for basic telephone services granted in 18 circles as per the new guidelines announced in January, 2001.

One national long distance (NLD) licence signed and four Infrastructure Provider Category-II licences were granted to provide end-to-end bandwidth in the year 2001. Other than this, guidelines for very small aperture terminal (VSAT), public mobile radio trunk service (PMRTS), global mobile personal communication by satellite (GMPCS), voice mail/audio/text/unified message service (UMS), were also issued.

The recommendations of the Telecom Regulatory Authority of India (Trai) for opening of international long distance (ILD) sector have also been accepted.

Mahanagar Telephone Nigam Limited (MTNL) launched its GSM-based mobile service in Delhi and Mumbai. Bharat Sanchar Nigam Limited (BSNL) commenced limited mobility services.

For village public telephone (VPTs), BSNL placed an order for 6 lakh lines of WLL equipment.

Will the hardware sector get any sops from the Government in this budget?
Considering the views of indigenous hardware industry, some relief has been recommended for consideration by Finance Ministry in the forthcoming budget.