Highly placed sources in DoT said there was stiff resistance to the creation of a telecom services board during the transition phase of corporatising the department primarily because of sweeping powers recommended for the board by a steering group set up by the Telecom Commission.

The government had proposed to separate the service providing functions of DoT from the licensing and policy formulating functions as part of the new telecom policy.

Under such an arrangement, operating aspects were to be looked after by the TSB which would work under the ambit of department of telecom services (DTS). However, sources said that the DoT may finally recommend setting up of only the department of telecom services and drop the proposal to set up TSB.

The steering group recommended wide ranging powersto Telecom Services Board including fixation and modification of tariff and issues concerning revenue sharing and interconnect arrangement.

The board was also proposed to have organisations such Mahanagar Telephone Nigam Limited, Videsh Sanchar Nigam Limited, Telecommunication Consultant India Limited and Centre for Development of Telematics under its control.

The steering group recommended that Telecom Commission under its financial functions will deal with the tariff policy and all financial cases related to licensing.

TSB was also proposed to have same administrative and financial powers as the existing Telecom Commission (TC). However, the steering group envisages that there will be no dilution of powers of TC after formation of TSB.

The steering group was constituted to workout the constitution and functions of Telecom Services Board (TSB) and chalk out the role of the Telecom Commission (TC) under the new scenario.

TSB was to implement and execute the interconnect agreement with otheroperators and interact with Telecom Regulatory Authority of India (Trai) on operational matters.

Interestingly, the group recommended that TC will continue to interact with TRAI on regulation related issues.

The steering group said that Industrial Training Institutes and Hindustan Telecommunication Ltd would continue to remain under the TC.

TSB will have overall control of telecom factories.

The group has also recommended splitting up of the Telecom Evaluation Committee (TEC) into two units Telecom Standards Centre (TSC), to be placed under the TC, and Telecom Engineering Centre (TEC), to be placed under TSB.

TSB's other proposed powers included preparing long term Five-year plans, annual development plans and budgeting, specifying standards for telecom equipments, network management, inspection and quality assurance and oversee international relations on all issues related to telecom operations.

TC will thereafter deal with issues relating to formulation of national telecom policy, licencingfunctions related to the Telegraph Authority, interconnection policy for basic, cellular and other operators.

The Commission would process applications for industrial licences, foreign collaborations, import of capital good, etc.

Monitoring of Wireless Planning Commission and spectrum management are under TC's ambit.

TC will also set out policy guidelines relating land procurement and construction and contract policy.

Functional linkages between TC and TSB would include policy related interactions, licensing and allied issues, cadre control/ personnel policy matters, technology absorption and upgradation, budget and accounting compilation and presentation, production planning of telecom equipment, resource mobilisation and frequency management.

The funding of DTS will be through its own internal resources and market borrowings through PSUs under its control.

The PSUs under DoT/DTS will continue to fund themselves through a combination of internal resources, market borrowings and budgetarysupport.

However, the budgets of WPC, TRAI and the secretariat are to be funded by the MoF.

Relations with all international organisations and fora are to be brought under one umbrella in the DTS and DoT. The activities related to International Telecom Union will be retained by TC.