New Telecom Policy holds the key to resurgence: ASSOCHAM

Industry body ASSOCHAM today welcomed the new National Telecom Policy 2011 and said it lays down the vision and roadmap to meet the government objectives for the next decade.

There are several forward looking proposals contained in the draft policy document, said Mr Dilip Modi, president of The Associated Chambers of Commerce and Industry of India (ASSOCHAM). “If implemented in a fair, equitable and transparent manner, they hold the key to resurgence in the telecom sector.”

Mr Modi welcomed the review of legal, regulatory and licensing framework to provide for convergence, recognition of telecom as infrastructure sector, intent to address right of way issue, common guidelines for setting up of towers, promoting green technologies, domestic manufacturing and indigenous developments.

He lauded the declaration that revenue generation will be a secondary objective, the government’s intention to rationalise taxes and levies, and the declaration that in matters of security the government will try and develop a rational criteria for sharing costs beyond threshold limit.

Mr. Modi said while the Indian Telegraph Act had stood the test of time, it was undoubtedly important to have a periodic review of sector legislations. In this context, he felt that the review of the TRAI Act is both necessary and desirable as there are several long-pending disputes on the role and powers of the regulator.

Mr T.V. Ramachandran, chairman of ASSOCHAM Convergence Communications Committee, said the government’s commitment to make as much as 500 MHz spectrum available by 2020 in various IMT bands represents a vital recognition of the role of wireless in meeting national connectivity and broadband objectives, and the need for adequate spectrum to be made available for the same.

He said that in view of the proposed framework of NTP 2011, the TRAI may have to re-visit some of its earlier recommendations on spectrum management and licensing framework. Mr Ramachandran said the exit policy, M and A framework, and migration package will play an important role in settlement of current spectrum controversies. It is thus important that these issues are addressed keeping in mind the bigger picture and the government’s long-term vision of the sector.

ASSOCHAM secretary general D.S. Rawat welcomed the transparent consultation approach towards formulation of the new telecom policy. Taking benefit of the vast experience and expertise that is available with all stakeholders is bound to lead to the formulation of a robust policy that will take Indian telecom to the next level of growth, he said.