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1.1 Importance of Telecom
The Government of India (Government) recognizes that provision of world-class telecom
infrastructure and information is the key to rapid economic and social development of the
country. It is critical not only for the development of the IT industry, but also has
widespread ramifications on the entire economy of the country. It is also anticipated that
going forward, a major part of the GDP of the country would be contributed by this sector.
Accordingly, it is of vital importance to the country that there be a comprehensive and
forward-looking telecom policy which creates an enabling framework for development of this
industry.
1.2 NTP 1994: Objectives and
Achievements
In 1994, the Government announced the National Telecom Policy which defined certain
important objectives, including availability of telephone on demand, provision of
world-class services at reasonable prices, ensuring India’s emergence as major
manufacturing/export base of telecom equipment and universal availability of basic telecom
services to all villages. It also announced a series of specific targets to be achieved by
1997. As against the NTP 1994 target of provision of one PCO per 500 urban population and
coverage of all six lakh villages, DoT has achieved an urban PCO penetration of one PCO
per 522 and has been able to provide telephone coverage to only 3.1 lakh villages. As
regards provision of total telephone lines in the country, DoT has provided 8.73 million
telephone lines against the Eighth Plan target of 7.5 million lines.
NTP 1994 also recognized that the
required resources for achieving these targets would not be available only out of
Government sources and concluded that private investment and involvement of the private
sector was required to bridge the resource gap. The Government invited private sector
participation in a phased manner from the early nineties, initially for value-added
services such as Paging Services and Cellular Mobile Telephone Services (CMTS) and,
thereafter, for Fixed Telephone Services (FTS). After a competitive bidding process,
licenses were awarded to eight CMTS operators in the four metros, 14 CMTS operators in 18
state circles, six BTS operators in six state circles and to paging operators in 27 cities
and 18 state circles. VSAT services were liberalized for providing data services to closed
user groups. Licences were issued to 14 operators in the private sector out of which only
nine licencees are operational. The Government has recently announced the policy for
Internet Service Provision (ISP) by private operators and has commenced licensing of the
same. The Government has also announced opening up of Global Mobile Personal
Communications by Satellite (GMPCS) and has issued one provisional license. Issue of
licenses to other prospective GMPCS operators is under consideration.
The Government recognizes that
the result of the privatization has so far not been entirely satisfactory. While there has
been a rapid rollout of cellular mobile networks in the metros and states with currently
over one million subscribers, most of the projects today are facing problems. The main
reason, according to the cellular and basic operators, has been the fact that the actual
revenues realized by these projects have been far short of the projections and the
operators are unable to arrange financing for their projects and, therefore, complete
their projects. Basic telecom services by private operators have only just commenced in a
limited way in two of the six circles where licenses were awarded. As a result, some of
the targets as envisaged in the objectives of the NTP 1994 have remained unfulfilled. The
private sector entry has been slower than what was envisaged in the NTP 1994.
The government views the above
developments with concern as it would adversely affect the further development of the
sector and recognizes the need to take a fresh look at the policy framework for this
sector.
1.3 Need for a New Telecom Policy
In addition to some of the objectives of NTP 1994 not being fulfilled, there have also
been far-reaching developments in the recent past in the telecom, IT, consumer
electronics, and media industries world-wide. Convergence of both markets and technologies
is a reality that is forcing realignment of the industry. At one level, telephone and
broadcasting industries are entering each other’s markets, while at another level,
technology is blurring the difference between different conduit systems such as wireline
and wireless. As in the case of most countries, separate licences have been issued in our
country for basic, cellular, ISP, satellite and cable TV operators each with separate
industry structure, terms of entry and varying requirement to create infrastructure.
However, this convergence now allows operators to use their facilities to deliver some
services reserved for other operators, necessitating a relook into the existing policy
framework. The new telecom policy framework is also required to facilitate India’s
vision of becoming an IT superpower and develop a world-class telecom infrastructure in
the country.
2.0 Objectives and
Targets of the New Telecom Policy
The objectives of the NTP 1999 would be as under:
-
Access to telecom is of
utmost importance for achievement of the country’s social and economic goals.
Availability of affordable and effective communications for the citizens is at the core of
the vision and goal of the telecom policy. -
Strive to provide a
balance between the provision of universal service to all uncovered areas, including the
rural areas, and the provision of high-level services capable of meeting the needs of the
country’s economy; -
Encourage development of
telecom facilities in remote, hilly and tribal areas of the country; -
Create a modern and
efficient telecom infrastructure taking into account the convergence of IT, media, telecom
and consumer electronics and thereby propel India into becoming an IT superpower; -
Convert PCO’s,
wherever justified, into Public Tele-info centres having multimedia capability like ISDN
services, remote database access, government and community information systems, etc. -
Transform in a
time-bound manner, the telecom sector to a greater competitive environment in both urban
and rural areas providing equal opportunities and level playing field for all players; -
Strengthen research and
development efforts in the country and provide an impetus to build world-class
manufacturing capabilities and -
Achieve efficiency and
transparency in spectrum management. -
Enable Indian Telecom
companies to become truly global players.
In line with the above
objectives, the specific targets that the NTP 1999 seeks to achieve would be:
-
Make available telephone on
demand by the year 2002 and sustain it thereafter so as to achieve a tele-density of seven
by the year 2005 and 15 by the year 2010 -
Encourage development of
telecom in rural areas making it more affordable by suitable tariff structure and making
rural communication mandatory for all fixed service providers -
Increase rural tele-density
from the current level of 0.4 to four by the year 2010 and provide reliable transmission
media in all rural areas -
Achieve telecom coverage of all
villages in the country and provide reliable media to all exchanges by the year 2002 -
Provide Internet access to all
district headquarters by the year 2000 -
Provide high-speed data and
multimedia capability using technologies including ISDN to all towns with a population
greater than two lakh by the year 2002
3.0 New Policy Framework
The New Policy Framework must focus on creating an environment, which enables continued
attraction of investment in the sector and allows creation of communication infrastructure
by leveraging on technological development. Towards this end, the New Policy Framework
would look at the telecom service sector as follows–
-
Cellular Mobile Service
Providers, Fixed Service Providers and Cable Service Providers, collectively referred to
as "Access Providers" -
Radio Paging Service
Providers -
Public Mobile Radio
Trunking Service Providers -
National Long Distance
Operators -
International Long
Distance Operators -
Other Service Providers
-
Global Mobile Personal
Communication by Satellite (GMPCS) Service Providers -
VSAT-based Service
Providers
3.1 Access Providers
3.1.1 Cellular Mobile Service Providers
The Cellular Mobile Service Providers (CMSP) shall be permitted to provide mobile
telephony services including permission to carry its own long distance traffic within
their service area without seeking an additional licence. Direct interconnectivity between
licenced CMSP’s and any other type of service provider (including another CMSP) in
their area of operation including sharing of infrastructure with any other type of service
provider shall be permitted. Interconnectivity between service providers in different
service areas shall be reviewed in consultation with TRAI and the same would be announced
by 15 August 1999 as a part of the structure for opening up national long distance. The
CMSP shall be allowed to directly interconnect with the VSNL after opening of national
long distance from 1 January 2000. The CMSP shall be free to provide, in its service area
of operation, all types of mobile services including voice and non-voice messages, data
services and PCOs utilizing any type of network equipment, including circuit and/or packet
switches, that meet the relevant International Telecom Union (ITU)/Telecom Engineering
Center (TEC) standards.
CMSP would be granted separate
licence for each service area. Licences would be awarded for an initial period of twenty
years and would be extendible by additional periods of ten years thereafter. For this
purpose, service areas would be categorized into the four metro circles and telecom
circles as per the existing policy. CMSP would be eligible to obtain licences for any
number of service areas.
Availability of adequate
frequency spectrum is essential not only for providing optimal bandwidth to every operator
but also for entry of additional operators. Based on the immediately available frequency
spectrum band, apart from the two private operators already licenced, DoT/MTNL would be
licenced to be the third operator in each service area in case they want to enter, in a
time-bound manner. In order to ensure level playing field between different service
providers in similar situations, licence fee would be payable by DoT also. However, as DoT
is the national service provider having immense rural and social obligations, the
Government will reimburse full licence fee to the DoT.
It is proposed to review the
spectrum utilization from time to time, keeping in view the emerging scenario of spectrum
availability, optimal use of spectrum, requirements of market, competition and other
interest of public. The entry of more operators in a service area shall be based on the
recommendation of the TRAI who will review this as required and no later than every two
years.
CMSP operators would be required
to pay a one-time entry fee. The basis for determining the entry fee and the basis for
selection of additional operators would be recommended by the TRAI. Apart from the
one-time entry fee, CMSP operators would also be required to pay licence fee based on a
revenue share. It is proposed that the appropriate level of entry fee and percentage of
revenue share arrangement for different service areas would be recommended by TRAI in a
time-bound manner, keeping in view the objectives of the New Telecom Policy.
3.1.2 Fixed Service Providers
The Fixed Service Providers (FSP) shall be freely permitted to establish "last
mile" linkages to provide fixed services and carry long distance traffic within their
service area without seeking an additional licence. Direct interconnectivity between
FSP’s and any other type of service provider (including another FSP) in their area of
operation and sharing of infrastructure with any other type of service provider shall be
permitted. Interconnectivity between service providers in different service areas shall be
reviewed in consultation with TRAI and the same would be announced by 15 August 1999 as a
part of the structure for opening up of national long distance. The FSP shall be allowed
to directly interconnect with the VSNL after the opening up of national long distance from
1 January 2000. The FSP may also utilize last mile linkages or transmission links within
its service area made available by other service providers. The FSP shall be free to
provide, in his service area of operation, all types of fixed services including voice and
non-voice messages and data services, utilizing any type of network equipment, including
circuit and/or packet switches that meet the relevant ITU/TEC ===.
The FSP shall be granted separate
licence, on a non-exclusive basis, for each service area of operation. Licences would be
awarded for an initial period of twenty years which shall be extended by additional
periods of ten years thereafter. The FSPs shall be eligible to obtain licences for any
number of service areas.
While market forces will
ultimately determine the number of fixed service providers, during transition, number of
entrants have to be carefully decided to eliminate non-serious players and allow new
entrants to establish themselves. Therefore, the option of entry of multiple operators for
a period of five years for the service areas where no licences have been issued is
adopted. The number of players and their mode of selection will be recommended by TRAI in
a time-bound manner.
The FSP licencees would be
required to pay a one-time entry fee. All FSP licencees shall pay licence fee in the form
of a revenue share. It is proposed that the appropriate level of entry fee and percentage
of revenue share and basis for selection of new operators for different service areas of
operation would be recommended by TRAI in a time-bound manner, keeping in view the
objectives of the New Telecom Policy.
As in the case for cellular, for
WILL also, availability of appropriate frequency spectrum as required is essential not
only for providing optimal bandwidth to every operator but also for entry of additional
operators. It is proposed to review the spectrum utilization from time to time keeping in
view the emerging scenario of spectrum availability, optimal use of spectrum, requirements
of market, competition and other interest of public.
The WILL frequency shall be
awarded to the FSPs requiring the same, based on the payment of an additional one-time fee
over and above the FSP entry fee. The basis for determining the entry fee and the basis
for assigning WILL frequency shall be recommended by the TRAI. All FSP operators utilizing
WILL shall pay a licence fee in the form of a revenue share for spectrum utilization. This
percentage of revenue share shall be, over and above, the percentage payable for the FSP
licence. It is proposed that the appropriate level of entry fee and percentage of revenue
share for WILL for different service areas of operation will be recommended by TRAI in a
time-bound manner, keeping in view the objectives of the New Telecom Policy.
3.1.3 Cable Service Providers
Under the provisions of the Cable Regulation Act, 1995, Cable Service Providers (CSP)
shall continue to be freely permitted to provide "last mile" linkages and
switched services within their service areas of operation and operate media services,
which are essentially one-way, entertainment related services. Direct interconnectivity
between CSP’s and any other type of service provider in their area of operation and
sharing of infrastructure with any other type of service provider shall be permitted.
Interconnectivity between service providers in different service areas shall be reviewed
in consultation with TRAI and the same would be announced by 15 August 1999 as a part of
the structure for opening up national long distance. In view of convergence, it is highly
likely that two-way communication (including voice, data and information services) through
cable network would emerge in a significant way in future. Offering of these services
through the cable network would tantamount to providing fixed services. Accordingly, in
case the above two-way communication services are to be provided by CSPs utilizing their
network, they would also be required to obtain an FSP licence and be bound by the licence
conditions of the FSPs, with a view to ensure level playing field.
3.2 Internet Telephony
Internet telephony shall not be permitted at this stage. However, Government will continue
to monitor the technological innovations and their impact on national development and
review this issue at an appropriate time.
3.3 Radio Paging Service Providers
The Radio Paging Service Providers (RPSP) shall be permitted to provide paging services
within their service area of operation. Direct interconnectivity between licenced RPSPs
and any other type of service provider in their area of operation including sharing of
infrastructure shall be permitted. Interconnectivity between service providers in
different service areas shall be reviewed in consultation with TRAI and the same would be
announced by 15 August 1999 as a part of the structure for opening up of national long
distance.
The RPSP shall be granted
separate licence, on a non-exclusive basis, for each service area of operation. Licences
would be awarded for an initial period of twenty years and will be extended by additional
periods of ten years thereafter. For this purpose, the service areas would be categorized
as per the existing structure. The RPSP shall be eligible to obtain licences for any
number of service areas.
Availability of adequate radio
frequency spectrum is essential not only for providing optimal bandwidth to every operator
but also for entry of additional operators. It is proposed to review the spectrum
utilization from time to time, keeping in view the emerging scenario of spectrum
availability, optimal use of spectrum, requirements of market, competition and other
interest of public. The entry of more operators in a service area shall be based on the
recommendation of the TRAI who would review this as required and no later than every two
years.
The radio paging licencees shall
pay a one-time entry fee. The basis for determining the entry fee and the basis for
selection of additional operators will be recommended by the TRAI. All radio paging
licencees shall pay licence fee as a revenue share. It is proposed that the appropriate
level of entry fee and percentage of revenue share for different service areas of
operation will be recommended by TRAI in a time-bound manner, keeping in view the
objectives of the New Telecom Policy. Further, TRAI may also examine and recommend the
revenue sharing arrangements between RPSP and other access providers, subject to technical
feasibility.
3.4 Public Mobile Radio Trunking
Service Providers
The Public Mobile Radio Trunking Service Providers (PMRTSP) shall be permitted to provide
mobile radio trunking services within their service area of operation. Direct
interconnectivity between licenced PMRTSP’s and any other type of service provider in
their area of operation shall be permitted after examining the legal implications in view
of the CMSP licences.
The PMRTSP shall be granted
separate licence, on a non-exclusive basis, for each service area of operation. Licences
would be awarded for an initial period of twenty years and will be extended by additional
periods of ten years thereafter. For this purpose, the service areas would be categorized
as per the existing structure. The PMRTSP shall be eligible to obtain licences for any
number of service areas.
PMRTSP licencees would be
required to pay a one-time entry fee. The basis for determining the entry fee and the
basis for selection of additional operators will be recommended by the TRAI. Apart from
the one-time entry fee, PMRTSP licencees would also be required to pay licence fee, based
on a revenue share. It is proposed that the appropriate level of entry fee and percentage
of revenue share arrangement for different service areas would be recommended by TRAI in a
time-bound manner, keeping in view the objectives of the New Telecom Policy.
3.5 National Long Distance Operator
National long distance service beyond service area to the private operators will be opened
for competition with effect from 1 January 2000. To promote setting up long distance
bandwidth capacity in the country, provide a choice to consumers and promote competition,
all NLDOs should be able to access subscribers. With a view to achieve the above, all
access providers shall be mandatorily required to provide interconnection to the NLDOs
resulting in choice for subscribers to make long distance calls through any operator. For
this purpose, the terms and conditions and other modalities would be worked out in
consultation with TRAI and the same will be announced by 15 August 1999. The terms and
conditions would also specify the number of operators, licence conditions on revenue
sharing basis and other related issues.
Usage of the existing backbone
network of public and private power transmission companies/Railways/GAIL, ONGC, etc.,
shall be allowed immediately for national long distance data communication and from 1
January 2000 for national long distance voice communications.
Resale would be permitted for
domestic telephony, announcement for the modalities thereof to be announced alongwith the
opening up of national long distance by 15 August 1999. Resale on international long
distance will not be permitted till the year 2004.
3.6 International Long Distance
Services
The subject of opening up of international telephony service to competition will be
reviewed by the year 2004.
3.7 Other Service Providers
For applications like tele-banking, tele-medicine, tele-education, tele-trading,
e-commerce, other service providers will be allowed to operate by using infrastructure
provided by various access providers. No licence fee will be charged but registration for
specific services being offered will be required. These service providers will not
infringe on the jurisdiction of other access providers and they will not provide switched
telephony.
3.8 Global Mobile Personal
Communication Services
The Government has opened up the GMPCS market in India and has issued a provisional
licence. The terms of the final licence would need to be finalized in consultation with
TRAI by 30 June 1999. All the calls originating or terminating in India shall pass through
VSNL gateway or in case of bypass, it should be possible to monitor these calls in the
Indian gateways. VSNL is also to be compensated in case gateway is bypassed.
The GMPCS operators shall be free
to provide voice and non-voice messages, data service and information services utilizing
any type of network equipment, including circuit and/or packet switches that meet the
relevant ITU/TEC standards. However, the licences will be awarded after the proposals are
scrutinized from the security angle by the Government.
The appropriate entry
fee/revenue-sharing structure would be recommended by TRAI, keeping in view the objectives
of the New Telecom Policy.
3.9 SATCOM Policy
The SATCOM Policy shall provide for users to avail of transponder capacity from both
domestic and foreign satellites. However, the same has to be in consultation with the
Department of Space.
Under the existing ISP policy,
international long distance communication for data has been opened up. The gateways for
this purpose shall be allowed to use SATCOM.
It has also been decided that Ku
frequency band shall be allowed to be used for communication purposes.
3.9.1 VSAT Service Providers
The VSAT Service Providers shall be granted separate licence, on a non-exclusive basis for
an initial period of twenty years and will be extended by additional periods of ten years
thereafter. Interconnectivity between service providers in different service areas shall
be reviewed in consultation with TRAI and the same would be announced as a part of the
structure for opening up national long distance by 15 August 1999.
The VSAT service providers shall
be granted separate licence, on a non-exclusive basis. Licences would be awarded for an
initial period of twenty years and will be extended by additional periods of ten years
thereafter.
VSAT licencees would be required
to pay a one-time entry fee. The basis for determining the entry fee and the basis for
selection of additional operators will be recommended by the TRAI. Apart from the one-time
entry fee, VSAT licencees would also be required to pay licence fee based on a revenue
share. It is proposed that the appropriate level of entry fee and percentage of
revenue-share arrangement would be recommended by TRAI in a time-bound manner, keeping in
view the objectives of the New Telecom Policy.
3.10 E-commerce
On-line e-commerce will be encouraged so that information can be passed seamlessly. The
requirement to develop adequate bandwidth of the order of 10 GB on national routes and
even terrabits, on certain congested important national routes, will be immediately
addressed to so that growth of IT as well as e-commerce will not be hampered.
3.11 Resolution of Problems of
Existing Operators
The New Policy Framework which seeks to significantly redefine the competitive nature of
industry, would be applicable to new licensees.
There are, however, multiple
licences that have been issued by the Government for cellular mobile services, basic
services, radio paging services, internet services, etc. It is the Government’s
intention to satisfactorily resolve the problems being faced by existing operators in a
manner which is consistent with their contractual obligations and is legally tenable.
4.0 Restructuring of DoT
World-wide, the incumbent, usually the Government-owned operator plays a major role in the
development of the telecom sector. In India, DoT is responsible for the impressive growth
in number of lines from 58.1 lakh on 1 April 1992 to 191 lakh in December 1998, showing a
CAGR of 20 percent. DoT is expected to continue to play an important, and indeed, dominant
role in the development of the sector.
Currently, the licensing, policy
making and the service provision functions are under a single authority. The Government
has decided to separate the policy and licensing functions of DoT from the service
provision functions as a precursor to corporization. The corporization of DoT shall be
done keeping in mind the interests of all stakeholders by the year 2001.
All the future relationship
(competition, resource raising etc.) of MTNL/VSNL with the corporatized DoT would be based
on best commercial principles.
The synergy of MTNL, VSNL and the
corporatized DoT would be utilized to open up new vistas for operations in other
countries.
5.0 Spectrum Management
With the proliferation of new technologies and the growing demand for telecom services,
the demand on spectrum has increased manifold. It is, therefore, essential that spectrum
be utilized efficiently, economically, rationally and optimally. There is a need for a
transparent process of allocation of frequency spectrum for use by a service and making it
available to various users under specific conditions.
The National Frequency Allocation
Plan (NFAP) was last established in 1981, and has been modified from time to time since.
With the proliferation of new technologies it is essential to revise the NFAP in its
entirety so that it could become the basis for development, manufacturing and spectrum
utilization activities in the country amongst all users. The NFAP is presently under
review and the revised NFAP-2000 would be made public by the end of 1999, detailing
information regarding allocation of frequency bands for various services, without
including security information. NFAP shall be reviewed no later than every two years and
shall be in line with radio regulations of ITU.
Relocation of existing Spectrum
and Compensation:
-
Considering the growing need of
spectrum for communication services, there is a need to make adequate spectrum available -
Appropriate frequency bands
have historically been assigned to defence and others and efforts would be made towards
relocating them so as to have optimal utilization of spectrum. Compensation for relocation
may be provided out of spectrum fee and revenue share levied by Government. -
There is a need to review the
spectrum allocations in a planned manner so that required frequency bands are available to
the service providers.
There is a need to have a
transparent process of allocation of frequency spectrum which is effective and efficient.
This would be examined further in the light of ITU guidelines. For the present, the
following course of action shall be adopted.
-
Spectrum usage fee shall be
charged. -
Setting up an empowered
Inter-Ministerial Group to be called as Wireless Planning Co-ordination Committee (WPCC)
as part of the Ministry of Communications for periodical review of spectrum availability
and broad allocation policy. -
Massive computerization in the
WPC Wing will be started
during the next three months’ time so as to achieve the objective of making all
operations completely computerized by the end of year 2000.
6.0 Universal Service Obligation
The Government is committed to provide access to all people for basic telecom services at
affordable and reasonable prices. The Government seeks to achieve the following universal
service objectives:
-
Provide voice and low-speed
data service to the balance 2.9 lakh uncovered villages in the country by the year 2002 -
Achieve Internet access to all
district headquarters by the year 2000 -
Achieve telephone on demand in
urban and rural areas by 2002
The resources for meeting the USO
would be raised through a "universal access levy" which would be a percentage of
the revenue earned by all the operators under various licences. The percentage of revenue
share towards universal access levy would be decided by the Government in consultation
with TRAI. The implementation of the USO obligation for rural/ remote areas would be
undertaken by all fixed service providers who shall be reimbursed from the funds from the
universal access levy. Other service providers shall also be encouraged to participate in
USO provision subject to technical feasibility and shall be reimbursed from the funds from
the universal access levy.
7.0 Role of Regulator
The TRAI was formed in January 1997 with a view to
provide an effective regulatory framework and adequate safeguards to ensure fair
competition and protection of consumer interests. The Government is committed to a strong
and independent regulator with comprehensive powers and clear authority to effectively
perform its functions.
Towards this objective the
following approach will be adopted:
-
Section 13 of the TRAI Act
gives adequate powers to TRAI to issue directions to service providers. Further, under
Section 14 of the Act, the TRAI has full adjudicatory powers to resolve disputes between
service providers. To ensure a level playing fields, it will be clarified that the TRAI
has the powers to issue directions under Section 13 to Government (in its role as service
provider) and further to adjudicate under Section 14 of the Act, all disputes arising
between Government (in its role as service provider) and any other service provider. -
TRAI will be assigned the
arbitration function for resolution of disputes between Government (in its role as
licensor) and any licensee. -
The Government will invariably
seek TRAI’s recommendations on the number and timing of new licences before taking
decision on issue of new licenses in future. -
The functions of licensor and
policy maker would continue to be discharged by Government in its sovereign capacity. In
respect of functions where TRAI has been assigned a recommendatory role, it would not be
statutorily mandatory for Government to seek TRAI’s recommendations.
8.0 Other Issues
8.1 Standardization
To enable the establishment of an integrated telecom network, common standards with
regard to equipment and services would be specified by the TEC. TEC would also continue to
grant interconnect and interface approvals for various service providers.
8.2 Telecom Equipment Manufacture
With a view to promoting indigenous telecom equipment manufacture for both domestic use
and export, the Government would provide the necessary support and encouragement to the
sector, including suitable incentives to the service providers utilizing indigenous
equipment.
8.3 Human Resource Development and Training
Human resources are considered more vital than physical resources. Emphasis would be
placed on the development of human resources for all fields related to telecom and the
dispersal of this expertise to the related fields. Such expertise shall also be made
available to other countries.
8.4 Telecom Research and Development
Recognizing that telecom is a prime pre-requisite for the development of other
technologies, telecom research and development (R&D) activities would be encouraged.
Government would take steps to ensure that the industry invests adequately in R&D for
service provision as well as manufacturing. Indigenous R&D would be actively
encouraged with a view to accelerate local industrial growth and hasten transfer of
technology. Premier technical institutions would be encouraged to undertake R&D
activities on a contribution basis by the telecom service providers and manufacturers so
as to develop multi-dimensional R&D activities in telecom and IT.
8.5 Disaster Management
International co-operation in the use of terrestrial and satellite telecom technologies in
the prediction, monitoring and early warning of disasters, especially in the early
dissemination of information would be encouraged. Financial commitment to disaster
management telephony and the development of appropriate regulatory framework for
unhindered use of trans-boundary telecom would be put in place.
8.6 Remote Area Telephony
Rural Telephony, areas of North East, Jammu and Kashmir and other hilly areas, tribal
blocks, etc., may be identified as a special thrust areas for accelerated development of
telecom. The Ministry of Defence shall be assigned a more active role in the development
of telecom in such remote areas as are identified for accelerated development of telecom.
8.7 Export of Telecom Equipment and Services
Export of telecom equipment and services would be actively incentivized. Synergies among
the various telecom players (manufacturers and service providers) would be exploited and
used to provide integrated solutions for exports.
8.8 Right of Way
Government recognizes that expeditious approvals for right-of-way clearances to all
service providers are critical for timely implementation of telecom networks. The
Central/State Government/Local bodies/Ministry of Surface Transport, etc., shall take
necessary steps to facilitate the same.
9.0 Changes in Legislation
The Indian telecom system continues to be governed
by the provisions of the Indian Telegraph Act, 1885 (ITA 1885) and the Indian Wireless
Act, 1933. Substantial changes have taken place in the telecom sector since 1992. ITA 1885
needs to be replaced with a more forward-looking Act.