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Short-term telecom policies are making life miserable for Indian operators. A temporary policy will result in poor network management and cost efficiency will suffer in the long-run since telcos are unable to pre-plan their strategies.

We are still dilly-dallying with 3G and WiMax spectrum allocation policy, Internet telephony guidelines and mobile number portability issues. An amicable and immediate solution to all these much debated policies has the potential to bring new lease of life into the telecom business.

This is important since the global slowdown has started affecting businesses in India. We need to avoid Indian companies starving for funds especially during their current phase of expansion in rural areas. We do not want an Indian telco going the Nortel way, which filed for credit protection.

Internet telephony, once it is opened up, will bring down long distance tariff and enterprises will be the major gainers. Despite recommendations from the telecom regulator, the government is going slow on the issue since leading telcos are opposing. The government must take a decision to herald the IP telephony boom in India.

MNP will favor both new and existing operators. Satisfaction of consumers on existing leading operators' network is dwindling. Let consumers be king. Let them come out of the price cartels. The telecom regulator has done its duty. The government's inaction and delay in implementation of MNP guidelines will lead to slow growth of the sector.

The much sought after policy on 3G WiMax spectrum is undergoing further changes because of the government's inability to find consensus among stakeholders.

Asia Pacific's 3G subscribers are expected to top 564 mn by 2013 from 121 mn in 2007 and an estimated 158.4 mn last year, according to Frost & Sullivan. India will have a 3G user base of 90 mn in five years, says BDA. India will miss this target considering the inaction by the current policy executors.

China, which is undergoing massive 3G deployments, will see the return of gadget makers such as Sharp, NEC, Toshiba, Fujitsu, and Kyocera when the country is welcoming its 3G era. India is ready to welcome more gadget companies, but we need pro-active wireless broadband strategies in place.

Both MTNL and BSNL will match and pay spectrum fee only after concluding the spectrum auction which is meant for private operators. A further delay will help public operators to keep their funds earmarked as auction fee in their own pocket. The government, following the announcement of the recent stimulus packages, needs funds. Recent debates and the slowdown have already put off many foreign telcos from bidding for 3G and WiMax spectrum.

A strong roadmap covering all important guidelines will assist all stakeholders. We need to stop unnecessary debate. We need a 10-year telecom policy urgently and move ahead.

Baburajan K
baburajank@cybermedia.co.in