Limited mobility not allowed under NTP \\'99/ ex-TRAI chief
NOVEMBER 18, 2002 12:00AM
FINANCIAL TIMES LIMITED, ALL RIGHTS RESERVED
Indian Express via NewsEdge Corporation : 11/15/2002
Investor confidence in the telecom sector is now showing `serious nervousness,' according to Justice S. S. Sodhi, former chairman of the Telecom Regulatory Authority of India. ``Investor confidence certainly stands dented by policy and regulatory instability with vital and significant telecom issues being subject of litigation in Courts; take for instance the limited mobility controversy,'' Sodhi said. Speaking to The Indian Express Justice Sodhi said that ``investors today must be a worried lot. A look at MTNL, BSNL, Bharti, and Hughes Tele stocks would exhibit serious nervousness amongst investors in India's telecom sector.'' He explained that India needed approximately Rs 3,00,000 crore to enhance teledensity from 4.6 to 15 over the next 6-7 years which is the biggest challenge for the government. On being asked whether in his view as the former regulator, on whether limited mobility was allowed under the National Telecom Policy (NTP)of 1999, Justice Sodhi said, ``we, at TRAI, never had any doubt that NTP '99 did not permit or cover limited mobility being provided by fixed line operators. As a matter of abundant caution we also sought and obtained confirmation of this from the Department of Telecommunications. One wonders what later prompted the change to permit fixed line operators to also provide limited mobility service. Limited mobility is nothing but a mobile service.'' On whether WiLL (mobile) services are really cheaper, former TRAI chief said, ``there are really two key issues: Are substitutable services being given different treatment? Is cheaper technology bringing in lower prices or is it differential regulation? These are questions of fact. The burden of proving, rather than assuming answers lies with the Regulator. The implications of this on consumers, investors and government policy is tremendous.'' He also said that ``today NTP 99 only allows technology neutrality. If India will benefit by convergent technology neutral and service neutral single licences then that is a totally different exercise. It requires commercial reconciliation and mutual agreement between the licensor and service provider, as in the case of the migration package, to move to a new and perhaps enlightened era of licensing. It has to be a well thought out process after consultation and agreement amongst stakeholders.'' On the issue of whether cellular operators have the freedom to rake up this issue after they agreed to give up all rights under the migration package under the NTP, the former TRAI chief said that ``as for the migration package there is clearly no connection between it and the fixed line operators. All that the migration package did was to do away with duopoly and allow more cellular operators to come in but it cannot in any manner be construed to imply sanction to subject cellular operators to competition in mobile services from operators of a different service with significantly preferential entry and license conditions. It must be appreciated that India does not have a convergent all service single regime.'' On the eve of the completion of 8 years since telecom liberalisation began in India, Justice Sodhi said that competition has had a positive effect on affordability as has been manifested by a significant drop in long distance and cellular call rates. This benefit of choice and lower cost of communication , he said, appears to have gone mainly to the middle class and business as teledensity in rural India continues to be less than 1 per cent. Access to communication remains a challenge in rural India despite the BSNL-led PCO revolution.
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