Computers Today, May 1-15, 1999, Telecomment

May 1-15, 1999 TELECOM

TELECOMMENT
NTP '99: Gloss on the Surface

The most glaring omission in the new policy is to allow DOT as licensor.

Bugging Humour
Medium Betrays the Message

T H Chowdary

The Group on Telecoms (GOT) has submitted its recommendations for a new National Telecom Policy (NTP '99). These recommendations are definitely an advance on the 1994 National Telecom Policy (NTP '94). But they still fall short of what is necessary in the light of technological developments, global changes in telecom structures, the changing nature of telecoms as a mere infrastructure for flow of information and India's own needs to leapfrog into a world class information society.

The Sunny Side

The new policy gives up the most destructive element in the implementation of the NTP '94, namely, giving licences for the highest bidder. The NTP '99 moves over to a one-time entry fee and revenue sharing. Both these amounts are to be worked out by the TRAI. This opens up the possibility that the NTP '99 will not be viewed as a revenue-generating licensing system, for the ever-deficit-ridden Government of India or as a disability imposed upon the competing P-Telcos by the non-licence fee paying incumbent DOT. We should hope that both the one-time entrance fee and the revenue sharing will be nominal and not phenomenal, and that both the amounts go into a common universal access and telecom regulation fund to be administered by the regulator. Also, the new policy commits the Government to open up the domestic long distance, i.e., interstate STD to competition by 1.1.2000.

The Dark Face

Sadly, there still are some serious unresolved problems and unrelieved obstacles. The most important is that the crippling licence fee, which already imperils the licensed P-Telcos, has not been unwound. The saving grace is that instead of the Shylockian DOT being left to resolve this, the document recommends that the Advocate General of India should suggest a scheme which can legally and also beneficially (for all players) address this phenomenal and painful knot.

The new policy continues the self-inflicted wound of not allowing Internet telephony. Firstly, the ban is unenforceable and therefore converts the users into law-breakers. It also cheats the Indian telephone user from having the benefit of low-priced national and international long-distance telephone service. Pity that Indian companies cannot undertake development of Internet telephony technologies and techniques. Netscape is building in Internet telephony into its browser. Would the DOT ban such a browser?

Some Ugly Ducklings

The most glaring and insufferable omission in the new policy is allowing the policy-maker, licensor, arbitrator, operator DOT itself to issue licenses to P-Telcos. This is most obnoxious and objectionable, and I must say, uncivilised for one of the competitors to be the licenser. As long as the operations of DOT are not corporatised, the licensing function must be removed from the DOT. A serious omission is the continuance of VSNL's monopoly on the international telecoms. With emerging technologies including Internet telephony, the monopoly will be undermined.

Finally, NTP '99 could have come out strongly in favour of the independence, vigour and vitality in TRAI. Its members should not be from any operators; they should all not be overaged, retired Government officers with no known talents, they may be proposed by the Minister but should be selected by a panel presided over by the Chief Justice of the Supreme Court with the Speaker and Chairman, and leaders of the Opposition in the Lok Sabha and Rajya Sabba as members; that directives issued by the Government to the TRAI must first be approved by the Cabinet; and that TRAI's recommendations/ views must be sought on the terms and conditions for operating licences.

The writer is ex-chairman, Videsh Sanchar Nigam Ltd

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