Speaking on the role of regulators Rao said it is an unfair expectation on the part of consumers to expect the regulator to lower tariffs, he underscored. The regulator has to perform the tricky job of balancing the interests of industry with the concerns of consumers, this need not always result in lower tariffs he said.

Agreeing with Rao, chairman of Orissa State Regulatory Commission S C Mahalik gave an example of his state where better policing of tariffs by the regulator has ensured that hikes in tariffs are reasonable. While the service provider will always want a cost-based tariff, in Orissa, in the last two years, the increase in tariff has been about 10 per cent which is the cumulative rise in the price of fuel and the level of inflation, he said.

Speakers at the session expressed concern about the government being reluctant to give autonomy to regulatory agencies. Rao expressed concern about the telecom regulatory agency clashing with the government. As long as the principal service provider continues to retain powers which should ideally be the regulator, the regulatory agency will not be able to fulfil its role, he said. In UK and US, in case of disagreement between the government and the regulator, the courts normally sent the matter for review but they seldom overrule the government, he said. The courts in India too may have to strengthen the regulatory agencies, he stressed.

Gajendra Haldia formerly joint secretary in the ministry of finance and currently involved in a project in formulating a regulatory framework for the road sector, said the main problem in strengthening the regulatory agencies was on account of the main service provider being involved in functions.