Reports indicate that the railways has decided to open up its captive telecom network to private investment. The decision, if implemented, will create a win-win situation for both the railways and the private investor.For the railways, reeling under a severe cash crunch, it would mean an access to a modern telecommunication system without having to shell out the money required. The private investor would take on the responsibility for the upgradation of the network and extend to the railways "top priority in right of way". The railways would also rid itself of the responsibility of maintaining the telecom network as the private investor would be responsible for both operations and upkeep. This would enable it to concentrate its efforts on its core businesses, that of transporting people and goods. The private investor, in turn, would have access to a full-fledged national telecom network at a cost much less than that of creating such an infrastructure anew. The railways would procure land along the trackwherever the network does not exist currently, at the insistence of the investor, who would be free to service any client. However, there are fears that the decision may not finally go through owing to the licensing arrangement that restricts private basic service providers to their circles. Access to an alternative to the DoT network therefore may not be an attractive enough proposition for the private investors.
Nevertheless, the idea mooted by the railways deserves to be applauded not only because of the benefits that would accrue to it, but also because of the larger implications it could have on the basic services in the country. If the idea is implemented, we could see the emergence of a true competition for the DoT.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
