6, ఏప్రిల్ 2012, శుక్రవారం

Grand Alliance of Telecom PSUs?


The draft National Telecom Policy described the role of the PSUs in the telecom sector saying, “The PSUs have played a pre-eminent role in provision of telecom services in the country, particularly in rural, remote, backward and hilly areas. Contribution of BSNL and MTNL to broadband penetration in the country is significant. The importance of PSUs in meeting the strategic and security needs of the country can also not be understated. This policy recognizes that these PSUs will continue to play such important role.”

But how to strengthen these telecom PSUs which are contributing significantly in the expansion of telecom services and in meeting the security and strategic needs of the country? The draft policy did not mention any policy support from the Government for making them the dominant players in the R&D, manufacture and services sectors of the telecommunications. Instead, it recognizes the pre-dominant role of the private sector telecom companies and ensures their continued viability. No such assurance was given in the draft policy for the continued viability of the PSUs.

The draft Policy only talked about the objective to “encourage recognition and creation of synergistic alliance of public sector and other organizations of Department of Telecommunications (DoT) through appropriate policy interventions and support for optimum utilization of their resources and strengths in building a robust and secure telecom and information infrastructure of the country” and further mentioned that the strategy is “to encourage Public Sector Units under the DoT to identify and exploit strategic and operational synergies so that they play a significant role in service provision, infrastructure creation, and manufacturing” and “to exploit individual strengths of organizations under DoT/DIT to their mutual benefit for ensuring these organizations to effectively flourish in the competitive telecom market while adequately supporting the security needs of the country.Efforts will be made for according preferential treatment for procurement of products and services rendered by individual organizations”.

As per the reports that appeared in the news papers, a panel will be formed under the Chairmanship of the Secretary DoT for preparing a plan for establishing a grand alliance between the Goverrnment’s Research&Development institute C-DoT, the manufacturing PSU company ITI, the service providing PSU companies BSNL , MTNL and TCIL. The panel will define the role of each of these PSUs in this alliance. It will resolve the likely conflicts between them in the alliance. It will make a formula for sharing of assets and for procurement of products for optimizing the capacities of these PSUs. C-DoT will do the R&D (Research and Development), ITI will manufacture the products based on the R&D of C-DoT and the products manufactured by the ITI will be bought by BSNL and MTNL.

The senior officers of the PSUs will be the members in this panel. This panel will also monitor the implementation of various initiatives required to be undertaken by each of these PSUs in strengthening the performance of the alliance. The Telecom Commission has already endorsed the objective and the strategy of the draft National Telecom Policy 2011 for exploring the synergies between these loss making PSUs in order to form a strong alliance capable of facing the competition with the private sector companies and coming out of their losses.

But how can these PSUs come out of their losses only by the co-ordination among them? Without financial from the Government for its R&D activities how the C-DoT can develop the technological know how? Also without transfer of the existing technological know how from the foreign companies how the R&D can be developed? What are the conditions to be imposed by the Government on the foreign companies for transfer of their technological know how? How the ITI can come out of its losses? BSNL and MTNL are already giving preferential treatment to it by purchasing 30% of their equipment from it. What about the preferential treatment to be given to it by the private operators also to ITI? What is the financial support from the Government for making ITI a top telecom equipment manufacturing company? Why the Government is not coming forward to fully subsidize the BSNL for the losses incurred by it on the rural landlines and why the TRAI is fixing a maximum ceiling of Rs 2000 crore only which can be recommended by it for this subsidy to BSNL whereas the actual losses incurred by it on rural landlines is about Rs 10,000 crores?  Why the Government has not implemented its commitment for reimbursing the license fee to BSNL as per the NTP 1999 and discontinued the reimbursement? Why should the BSNL and MTNL pay the upfront spectrum license fee to the Government when the telecoms PSUs in China were exempted from payment of such upfront fee?

Instead of limiting its support only for the synergistic alliance between the telecom PSUs, the Government should extend all the necessary policy and finance support to the PSUs as detailed above.












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