New Delhi: The Planning Commission has favoured a `single licence' for all telecom services saying separate licences for each service was inducing cost, and worked as an artificial barrier for growth of telecom in the country. "Market based on convergence of services would lead to the optimum utilisation of resources and least cost of various services," the plan panel in the draft mid-term appraisal of the ninth five year plan said.Service segmentations and separate licence for each service had become redundant and worked only as artificial barriers, the Commission said, adding that it was time to do away with such practices. These need to be removed by issuing common or single licences for all telecom services, and evolving common revenue sharing formula, the mid-term appraisal said.
The draft is likely to be placed before the full Planning Commission headed by Prime minister Atal Bihari Vajpayee next month, Commission sources said. The Commission also recommended opening of the Internet telephony, saying "the existing policy should not be allowed to hold back the benefits accruing from technological innovations if it is not against the interests of the nation and the consumers." The Commission said that Internet telephony, if allowed, would revolutionise the long distance communications as it would provide services at a fraction of the present cost.
Opening of Internet telephony like the data services would not harm the national interests in any way, the Commission said. On the contrary, it might lead to optimum utilisation of resources and provision of least cost services to the consumers, thus leading to maximisation of welfare. Various government departments like the Videsh Sanchar Nigam Ltd (VSNL), Department of Telecommunications (DoT) and Mahanagar Telephone Nnigam Ltd (MTNL) are already leading Internet service providers and the opening of Internet telephony would provide them a greater opportunity to be major players in the new era, the Commission argued.
Formulating a policy in the sector faces an additional challenge because of the fact that technological change in telecommunication sector has been especially fast and is expected to lead to major changes in the structure of telecommunication industry worldwide. Convergence of data, voice and image transmission, and use of wide bandwidth and high speed Internet connectivity have added new dimensions which need to be taken into account in making mid-course corrections in policy, the Commission said.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.