NEW DELHI, May 1: The Department of Telecommunication (DoT) secretary AV Gokak has said that there is a need to reduce excessive licence fee for private sector participation in sectors like cellular and wireless telephony.Speaking at the national convention on telecommunications organised by the Confederation of Indian Industry (CII) Gokak said that even if total competition was not possible in all parts of the system, competition may be introduced in some segments.He pointed out that the difference between the cost to the economy and the cost to the consumer is being increasingly appreciated. Infrastructure services, therefore, would have to be provided on the basis of full cost coverage through public sector, Gokak added.
Gokak felt that the acceleration of growth from 5.6 per cent per annum to eight per cent per annum would generate a massive demand for infrastructure services. The DoT secretary outlined the problems that had surfaced in this sector as excessively high licence fees, problems offinancing and non-viability arising on account of lack of expertise in project appraisal, restructuring of the DoT, problem of spectrum allocation and the multiplicity of clearances.
Gokak further said that DoT would be forwarding recommendations to the government within 15-20 days.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
