Editorial- July -2016

The Sanchar Bhawan has a new occupant. Manoj Sinha has been anointed as the new telecom minister (Independent Charge). That the Telecom Ministry has been hived off as a separate ministry shows that it is intended for precision-based treatment. The Ministry faces the Challenge of Five. And all affect the latest macro policy formulation of government – Gaon (the village), Garib (the poor), and Kisan (the farmer).

So, first is the Challenge of the Unconnected Villages. Even after 20 years of mobile services in the country, there are atleast 55,669 villages where there are no mobile services. One might say that unconnected villages are just about 9 pc of the total villages, but this number has remained static for over 10 years.

For the past year DoT has been saying that it will cover 16,229 villages in the first phase. But what are the timelines for the first phase, are all villages so listed included? There is no clarity. For this figure also, 8,255 villages are not even on the drawing board. As for the remaining 38,440 villages (of 55,669), DoT says wait for five more years.

The second challenge has been the floundering pace of the BharatNet project (also known as NOFN). After many re-christenings, committee, system, incorporation of new company, formation of SPV and all manner of administrative trapping imaginable, it has resulted in a pitiful yield. Up until now, the DoT & BSNL have ensured that the Prime Minister’s Super-Priority Project turns turtle. The NOFN is the biggest public infrastructure project in the digital sector; it is the buckle that will fasten all G2C services. Enough of serenading about intentions at seminars, we need efficacious rollouts now.

Third is the Challenge of Electronics Manufacturing. Though, this is a separate ministry now with a different minister of a cabinet rank but there are overlapping concerns. Two Semiconductor businesses that signed up “In-Principle” Letters with much fanfare have chickened out; one has withdrawn while the other did not fulfill the conditionality. Electronic imports are surging. But handset manufactures in India have also increased significantly.

Fourth, big quantities of spectrum are to be auctioned. Past experience shows instances of unsold spectrum. This must be avoided. Nothing can be done on reducing the reserve price. But there are two parameters where intervention can be made and should be taken up – Service Tax and SUC. This has been also a long-standing industry requirement and a unique treatment of this matter is needed.

Fifth, is the challenge of Broadband (BB). This involves increasing the usage, spread of BB and bringing down the data tariff. The July issue comprehensively presents features of strategic tasks, conducts assessments and offers solutions.