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 Home > Columns > Editorial > Shock Treatment?
  EDITORIAL
Shock Treatment?
The current impasse that the Indian telecom has run into is very unfortunate, and least likely to benefit anyone.
Ibrahim Ahmad
Monday, November 05, 2007

The way the TRAI recommendation that there should be no cap on number of operators or their technology preference is finally taking form, it seems to be a recipe for disaster. While the TRAI was being very democratic and forward looking in its recommendation, the government has not been able to handle the final implementation. And, there is complete confusion and agony in the market.

The current impasse that the Indian telecom has run into is very unfortunate, and least likely to benefit anyone. There are already lots of operators, big and small, national and regional, based on several technologies. Most of them are in the process of expanding networks, and investing into hardware and software that will improve their networks reach and quality. And, many of them have applied for more spectrum. In such a scenario, this type of confusion should not be a surprise. We know that Reliance has applied for GSM, and now we see Tata Teleservices, which had all along claimed it will stick to CDMA and not look at GSM, has applied for GSM license and spectrum.

It is crucial that immediate steps be taken to resolve the matter. Ideally, at the time of 2nd round of telecom liberalization-when it was clear that it will be technologies that will influence policies, and global giants will get interested in the Indian market-a roadmap should have been put in place. With this roadmap or policy guideline, operators could get a very clear idea of what the future is likely for some very crucial factors like technology options, licensing policies, spectrum availability and costing, and revenue share arrangements. Also, ideally, these policy guidelines should be independent of the government, meaning whichever be the ruling political party, the basic direction should not change.

Having said all this, let me reiterate my full support for the TRAI on this matter. I now hope that the government will have the courage and conviction to stand by the TRAI on this. The big reason for me to support this is the same because of which I was supporting telecom liberalization in the early 1990s. I believe and it is for all of us to see that if telecom is opened up to private and international players, there will be no monopoly, prices will come down, international best practices will come in, quality of service will improve, and telecom services will be accessible to all. We know that the 250 mn target got achieved 60 days before the target date.

I strongly believe that opening up telecom will provide smaller, regional, and new players also an opportunity and a role to value add to the entire telecom ecosystem. This will have a positive impact on everybody, including consumers. If the current policy is derailed, these aspiring small, regional and new players will be shut out. That is not a very healthy sign of a big and growing market. And, private players should be the last ones to oppose this, directly or indirectly.

I would be one of the first people to salute and commend the role of the private operators in the telecom revolution this country is witnessing. But, there are quiet a few areas of concern that continue to bother subscribers. These are to do with transparency of billing processes and overcharging, confusing and misleading schemes, customer support, quality of connectivity and voice, availability of service level agreements, and so on. Ask any one who uses a mobile phone, and he will complain about rising telecom bills and declining quality of service. The sad part is that these problems are not there high enough on the operator's agenda. I think the present day operators need to get together, think about these issues, and promise a roadmap, before they start opposing philosophies and policies that they supported once upon a time.


ibrahima@cybermedia.co.in

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