It wanted to limit the number of players, it wanted the selection to be made through a bidding process (be the amount of share of return). It looks like the regulator was also convinced that this was the only way to select a bidder in a transparent way. However, such a move would have amounted to a repetition of what the Government did in the earlier rounds of bidding.

Opening of the basic services as envisaged by NTP-94 did not happen and the bidding method turned out to be a disaster, the results of which, even now are haunting the Sanchar Bhawan. We have to learn and stay away from our past mistakes. Let us examine the strength of DTS's arguments/reasons for delaying, if not derailing, the opening up of the long distance sector.

The long distance revenues are used by DTS to subsidise the socially relevant rural telecom department. Here the comparison to the Sholay coin comes in: tearing to face competition the DTS thinks that the telecom coin is both sides `head' - head meaning `service' and `tail' meaning `business'.

The monopolist would never look at the business side of the coin, would protest against any reductions/benefits given to the consumer (remember DTS saying that as a result of the first round of tariff re-balancing, it lost Rs 2,000 crore, instead of saying that their net profits of more than Rs 10,000 crore have come down by Rs 2,000 crore). The government may never attempt to tap the hidden demands and stimulate the long distance traffic.

It will simply point to all, the `head' portion of the coin (subsidised rural telephony) again and again.

Following are the arguments DTS will give for the `frequently asked' questions:
Are you not happy about tariff rebalancing?
It will seriously jeopardise DTS's finances. We are not (budgetarily) dependent on MoF. We develop/maintain rural communications at great cost. Any rebalancing has to be done very carefully. Time is not ripe for next round of rebalancing. (coin with `head').

Are our citizens not entitled to lower tariffs?
Yes, but in India the sector has been opened up when the spread is hardly 2.5 per cent. In other countries they did it when the percentage was more than 10. If we do not take care of `balanced growth' we will be creating a divide and for India, the `Vikas' will be left out from the communication revolutions. (Already some of the states of India are becoming information `haves' and the rest `have nots'). So any tariff reduction has to be done, with caution and slowly. (coin with `head').

How right is it for an existing customer to pay for the future customer? Why should a urban high user pay for his village brethren? Why does not DTS approach the market for further capital needs like any other player.
But DTS has to provide for VPTs, develop North East states, Jammu and Kashmir etc., which do not make economic sense, but we have to do it because this is our responsibility and they are necessary for the states. We do go to the market through MTNL for our needs (Same coin with `head').

Superficially the above answers will convince anyone. It will be difficult to argue against concepts like security, VPTs et all. But some one should say that you have no `business' side also when you have to provide quality service at affordable rates. For your business operations you should reduce costs, adopt best practices. Why did you keep your `service' as a separate unit and obtain budgetary support or fund through a universal service levy.

What exactly is your investment/expenditure for the rural sector. Why are you surrendering some of the budgetary amount for development year after year?
Funding rural communications is too serious a subject to be left to DoT/DTS. If DTS does not subject itself immense to the market dynamics, it will end up a martyr like Amitabh Bachhan in Sholay - its revenue and clientele will shrink. Viewed from this angle, it is refreshing to note that the GoI is finally forcing the pace of corporatisation of DTS - a thing that should have been done yesterday.

No one will or can belittle the developments that have taken place in the telecom sector, thanks to DTS. In the few years there has been an enormous growth in the number of telephones provided by DTS. Last year alone has seen a growth of nearly 50 lakh lines. But at the same time the waiting list has also grown. People are expecting a faster growth from both DTS and private sector.

They want larger bandwidth to make India compete in the global economy. They are also waiting for the fall in prices which will make telecom affordable to all. The future will be brisk if the government improvement so fast the policy statements of NTP-99. In an enabling manner the reported recent statements of the Planning Commission (Mid-term review of the Ninth Plan) that with the convergence of technologies, service segmentations and a separate licence for each service becomes redundant and work only as artificial barriers, are to be welcomed by all.