Communications minister Arun Shourie has stumped everybody with his Track II route to settling the telecom tangle. Get a group to decide what you can’t on your own. 

When nothing seemed to be working, like a true politician, he got his senior colleagues together, all of whom have never had anything to do with telecom, to conduct a panchayat (where village elders settle disputes). 

The result was that in a matter of 90 minutes, four senior politicians who also happen to be ministers, had decided on several highly controversial and debated issues, which so many ministers and their learned advisors had not been able to do in the past. Sounds very interesting! 

The group of ministers (GoM) on Telecom, by deciding in favor of a unified telecom license, have in one single sweep, almost set the way for ending the GSM versus WLL limited-mobility controversy. Obviously in favor of WLL. If this sails through the Cabinet and is implemented, then Shourie will deserve a standing salute.

There were apprehensions that the formation of the GoM on telecom might actually complicate matters, as each one of them will be under pressure from one camp or the other, fight for their case. But that actually did not happen, although there were opposing viewpoints among ministers, on several issues. 

Print

Comment

Email

Digg

Del.icio.us

Reddit

However, there is still a long way to go. While many pundits say that the cellular players have more or less accepted the reality of WLL coming in gradually with full mobility, there is a big possibility that the cellular operators may go to the courts, if the compensation structure is not to their liking. Then there is always the chance of those ministers in the GoM on telecom, who had voiced opposition to some of the decisions taken, deciding to secretly or openly scuttling the unified license process. 

In a masterstroke, what the GoM has also done is to give in to some of the big demands of cellular operators—intra-circle mergers, 49 to 74 percent foreign investment hike, and more spectrum allocation. These policy decisions will give cellular players, a big boost. At the same time, it will force them to soften their stand on the unified licensing issue. 

The real price war will now start, and hopefully, to the consumer’s benefit. Intra-circle mergers and more funds will allow GSM operators to get more aggressive in the market place, with more investments in networks and price drops. On the other hand, unlimited mobility will allow WLL players to really be able to throw open to the public all the services they have been promising. 

Shourie will make an unfathomable contribution to Indian telecom and convey to the world that India is fair to its investors, if he can get the GSM players the right compensation and if he can get the unified license through so that policy does not become a barrier for technology growth.

Ibrahima Amhed