'The Most important issue in the SAARC region is to overcome the digital divide'

India can take the lead role in bringing down the digital divide
in the SAARC region. Nripendra Misra, chairman of Telecom Regulatory Authority
of India, shared TRAI's vision and plans to have a better telecommunication
world in one of the hottest telecom markets. Excerpts from the e-mail interview:

The SAARC region is looking at cooperation among telecom
operators. What are the main objectives?

The main objectives of the SAARC telecom operators' cooperation include
promotion of cooperation in the enhancement of telecommunication links and
utilization of information technologies within the SAARC region. There is a need
to minimize disparities within and among the SAARC member states in the
telecommunications field; to harness telecommunication technology for the social
and economic upliftment of the region through infrastructure development by
optimal sharing of available resources and enhancing cooperation in technology
transfer, standardization, and human resource development; and to evolve a
coordinated approach on issues of common concern in international
telecommunications fora.

Can the cooperation help in bringing down tariffs?

The main objective of cooperation among the operators is to bring down the
international call tariffs, including the mobile roaming charges, across the
SAARC countries.

Can it lead to a uniform tariff in the SAARC region?

The attempt at present is to concentrate on the international call charges
and mobile roaming tariff. Different countries have different geographical areas
and penetration of telecom services. Therefore, applying uniform tariff within
the SAARC countries may not be immediately feasible. The present focus is on
regulating roaming charges within the SAARC region. The tariff within SAARC
countries will be looked subsequently.

Can TRAI take the lead role in taking up such initiatives?

TRAI has already taken the lead to rationalize the international roaming charges
for the SAARC region.

What other initiatives can TRAI take?

The standardization and mutual cooperation among telecom operators in SAARC
countries is one of our prime concerns. TRAI is already working on improving
regional connectivity and direct link between SAARC countries, implementing IN
services, promoting IP based networks and NGN networks, and preparing a
framework toward security issues in IP networks.

TRAI is attending a SAARC level seminar in December. What are
the objectives?

Dhaka is hosting the South Asia Telecommunication Regulatory Council (SATRC)
meeting in December 2007. The main objectives of SATRC include radio frequency
coordination, issues related to the international telecommunication, and
regulatory trends and standardization. SATRC also would deliberate on regulatory
issues of common concern of the South Asian region.

Can SAARC operators learn from India?

In a fast growing telecommunication sector, learning is a continuous
process. All SAARC countries have a very rich experience in telecommunication
development. Most of the ground realities are very common among SAARC countries
and, therefore, there is a huge scope for cooperation and understanding among
SAARC countries.

What are the burning issues in the SAARC region?

The most important issue in the SAARC region is to overcome the digital
divide. While penetration in urban areas is increasing, the availability of
telecom services in rural areas is limited. Low penetration of broadband is
another area of concern. We have to consider reducing the cost of customer
premises equipment and computers. Development of the local content will also be
very useful. SAARC countries can jointly use better negotiating strength to
reduce the price of the equipment for the benefit of the consumers. Sharing of
the experience and comparative benefits of various wireless broadband
technologies like 3G, WiMax etc will be very useful for large-scale wireless
broadband deployments. NGN is another emerging area of concern. While a lot of
activities related to NGN is taking place in developed countries, we have to
share experience and strategy for a large scale spread of NGN in our region.

What should be the focus of SAARC telecom operators to sustain
in the market?

The fast growth in the telecom sector is also witnessed with reducing
average revenue per user (ARPU). The technological advancements facilitate
launch of new services and has resulted in reducing voice call rates year after
year. The operators have to focus on value added services and applications in
coming years to sustain their business. The implementation of various value
added services, including IPTV, mobile TV, application services, and broadband,
will play key roles in this area. The multimedia services and application will
be important drivers to sustain the revenues of telecom operators.

What is the business outlook of the SAARC region?

Telecom operators in the SAARC region have tremendous scope of development,
keeping in view the low tele-density, especially in rural areas, and
availability of VAS and applications at present. The increasing popularity of
multi-media services and migration to NGN network in many of the countries
indicates an urgent need to increase broadband penetration. The broadband
penetration in most of the SAARC countries is low and has emerged as one of the
challenges for telecom operators. Introduction of new technologies will
facilitate new services and will result in enormous development in the region.

Does the SAARC region offer enough potential for telecom
investors?

The SAARC region is witnessing the highest growth in telecom sector at
present. The RoI is good, and is likely to be sustained in the years to come.
Moreover, launch of new services and applications will only add to higher
returns and better investment avenues.

Baburajan K


baburajank@cybermedia.co.in