Telecom industry has high expectations from the new Telecom Minister, Kapil Sibal

Kapil Sibal has assumed charge of the telecom and IT ministry at a time when the entire communications industry is going through a tough phase. Thanks to the innovative, per-second billing schemes offered by several operators, the industry is feeling the heat now. Operators' 3G/BWA investments are going to create more pressure on their bottomline. There is less clarity on the fate of operators who have received 2G spectrum licenses during A Raja's tenure.

The global telecom industry is working on the LTE launches. India will miss the LTE bandwagon for at least 2-3 years. Manufacturing is yet to become a thrust area for us. Industry can have more clarity on the security issues that plagued the fortunes of some leading vendors. Most of the telecom equipment vendors are likely to show dismal performance during the current fiscal.

Guidelines on VoIP are still gathering dust at the telecom ministry office. Broadband will be missed in 2010, thanks to our ad hoc policies. India is yet to frame a long term roadmap for the telecom sector. The coming budget may bring more cheers to the industry. COAI and other industry associations want the government to remove several tax barriers.

But the industry is hailing the appointment of Kapil Sibal. “He will be transparent and quick to take decisions,” says an industry veteran.

Since Kapil Sibal will have too many portfolios to handle, there will be more pressure on him. Telecom industry has high expectations, more from the new minister. Sibal assumed the charge of Ministries of Science and Technology and Earth Sciences in addition to his current portfolio after Prithviraj Chavan's exit.

Industry still feels that there should have been more transparency in spectrum allocation. The 2G spectrum allocation has reportedly caused an alleged loss of `1.76 lakh crore to the government, the Comptroller and Auditor General of India has stated in a report.

Kapil Sibal's qualifications will add to his capabilities to manage the show at Sanchar Bhawan.

Akanksha Singh
akankshas@cybermedia.co.in