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Thursday, December 17, 1998

Tackling telecom 

 
The draft of the new telecom policy for 1998 (NTP'98) has proposed the allocation of sweeping powers to the Telecom Regulatory Authority of India (TRAI). TRAI, as one might recall, was a quasi judicial body formulated in March, 1997, to oversee a smooth transition of the Indian telecom sector from a monopolistic environment to a freer structure, which included increased participation from private operators.

However, the much publicised MTNL imbroglio clearly highlighted the fact there was a complete lack of formal and informal levels of communication with powers that be. Which in this case was the Department of Telecommunications (DoT). In fact the resultant turf war between TRAI and the DoT, clearly resulted in much unwarranted uncertainty in the telecom sector. All of which suceeded in raising a fundamental question, of whether such turf wars should be allowed to jeopardise the larger national interest?

Fortunately, the PM's Group on Telecommunications (GoT) headed by Jaswant Singh, holds a view to thecontrary. The group believes that a convergence of technologies and the application of modern telecommunications technology is essential for the country's rapid growth. In this regard, fussing over spheres of influence will only involve increased costs to the country.

Upholding this belief, the GoT has envisaged allocating sweeping powers to the TRAI, which would include the fixing of entry fees for new operators. Furthermore, TRAI, would also have the power to decide revenue sharing between the DoT and operators of basic and cellular services and even fix the number of licences to be awarded per circle under the new deregulated structure. Thus, if these measures are implemented in totality, it could ensure that the son namely TRAI, would step out from the shadows of the father, which in this case is the DoT.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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