Telecom Regulatory Authority of India (TRAI) Chairman Nripendra Misra has said that the Indian telecom story is still strong but at the same time he also admitted that growth has been hit by policy disputes and that the regulator must be given greater power. Misra also said that auction is the best way for issuing licences.
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“We are extremely fortunate that the global meltdown has not adversely affected the telecom sector," Misra says. "The companies are in reasonably good financial health. They have investable surplus, and therefore, they are deploying it in the infrastructure expansion.”
Misra adds, “When it comes to the rural areas where they will have to spend more to achieve the same results at the same time they will perhaps get lesser revenue. It is always a matter which must be monitored very regularly.”
Misra went on to say that a close look is always needed and we need not be unduly confident that the rosy picture which presents itself today in terms of investable surplus will continue for always, for times to come. “So we need to monitor that,” he added.
“The Universal Services Obligation (USO) fund,” Misra said, “is nothing but a creation from the contribution of the telecom service providers.” He further said, “So, I see no reason why USO Fund should not be fully utilized. We have today come out with the recommendation where we have highlighted that the utilisation from the USO Fund is very disturbing. It should be much more than what it is today. In the area of infrastructure, in the area particularly of putting up towers and it is should be free to everybody.”
“Anybody who puts a tower and ensures that he would allow minimum of two telecom service providers to come there-let the 100 flowers bloom-why should I pass through the tender procedure?,” the TRAI Chairman added. Misra said, “I should be able to calculate the cost of towers, the margins which are necessary to boost the construction of towers.
Likewise I should be able to calculate what would be the price, our subsidy which is required broadband, laying-off optical fibre and that should be subsidized from the USO fund and on liberal terms.” He added, “I think we can achieve this only if the USO administrator is taken out from the normal organizational structure of the government.”
We are extremely fortunate that the global meltdown has not affected adversely the telecom sector. The companies are in reasonably good health. I particularly speak of the financial health of the company. They have investable surplus and therefore they are in deploying it in the infrastructure expansion. When it comes to the rural areas where they will have to spend more to achieve the same results at the same time they will perhaps get lesser revenue. It is always a matter which must be monitored very regularly.
I would say that a close look is always needed and we need not be unduly confident that the rosy picture which presents itself today that in terms of surplus, I am talking in terms of investable surplus that will continue for always, for times to come. So we need to monitor that.
Universal Services Obligation (USO) fund is nothing but it is a creation from the contribution of the telecom service providers. So I see no reason why USO Fund should not be fully utilized.
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We have today come out with the recommendation where we have highlighted that the utilisation from the USO Fund is very disturbing. It should be much more than what it is today. In the area of infrastructure, in the area particularly of putting up towers and it is should be free to everybody.
Anybody who puts a tower and ensures that he would allow minimum of two telecom service providers to come there – let the 100 flowers bloom – why should I pass through the tender procedure? I should be able to calculate the cost of towers, the margins which are necessary to boost the construction of towers. Likewise I should be able to calculate what would be the price, our subsidy which is required broadband, laying of optical fiber and that should be subsidized from the USO fund and on liberal terms and I think we can achieve this only if the USO administrator is taken out from the normal organizational structure of the government.
We are very upset with call drop rates. We are upset with delays in redressal of grievances. At the moment, we don’t want the mobile services to go on the fixed line kind of a history. Apart from one excuse or let us one reason which may not excuse but legitimate – the spectrum shortage which is often flagged as the key factor, I think it is not just that factor alone which is responsible. It is maintenance, the network which is under strain which has not being done. It is expansion of the network which should have been done – has not been done. It is the efficient usage of spectrum which should have been done with the new technology – has not been done.
Last regulation, tomorrow we are coming out with, we have decided that we would rate the companies on the basis of certain select parameters for each circle and give a quarterly rating – it is more or less on the TAM rating kind of principle.
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