Reports have been published in the news media that the MTNL may cease its CDMA operations since there is not sufficient growth. At present it has 1,50,000 CDMA customers. The management is reported to have stated that since there is no growth in the segment, no fresh investment can be made in this sector. What will happen to the existing subscribers?

It is also reported that one more VRS will be implemented by MTNL. With 3 VRSs ( or 2) already imposed, the staff strength has been reduced drastically and there are only about 50,000 employees. If the present proposal for VRS of 15,000 to 20,000 is implemented, there will be acute shortage of staff and the services will suffer seriously.  The stand of the unions are yet to be known on this fresh VRS proposal. I feel that they should oppose it and defeat the same as was done by the BSNL unions earlier and also fighting against it at present.

The Telecom Sector has been the biggest contributor to the government’s revenue for the last two years, with the huge amount received through the auction for 3G, BWA spectrum etc.  If the auction is conducted for the 2G Spectrum being released by the private telecom companies whose licences have been cancelled by the Supreme Court recently, then Telecom will be first in revenue earning for this year also.

DOT wants to save the private telecom companies by introducing f tax reliefs, abolishment of service tax on internet, broadband services etc. Tax exemptions are also suggested by the DOT for the telecom manufacturing units. We are not against these, but when we demanded these concessions for the incumbent operators, BSNL and MTNL, the DOT was silent. But when the private companies have demanded, the DOT is proposing the same. My suggestion is that in addition to these reliefs, BSNL and MTNL should be given special status and additional tax reliefs as the incumbent operators, who are providing services in the most interior areas of the country as part of implementing the government’s commitment for universal service, despite heavy loss.

DOT has also recommended Infrastructure status for telecom, which will benefit the sector in many ways. The government which is in a quandary due to the corruption cases and many observations and judgment of the Supreme Court , will have to tread carefully. But again, I want to assert that the government should always remember the pioneer work done by the DOT/BSNL/MTNL in universalizing the service and bringing it to all corners of the country during the last six decades, when there was no private company.

Communications Minister,  Kapil Sibal has stated that 4G spectrum will be auctioned by the end of this year 2012. He also stated that there is dearth of spectrum for auction after the spectrum is released by the Defence. He was addressing a meeting at Mobile World Congress, Barcelonia.

The people of the country only will hope that the auction should not be like 2G auction. Let the auction be conducted in a clear and transparent way.

The telecom companies whose licences are to be cancelled as per the Supreme Court order have demanded bail-out packages for them by refunding the licence fee along with interest, which the governemt is seriously thinking of. Instead of implementing the SC judgment faithfully, the government is on the search for some bail-out to help them. This is only natural on the part of this government agressively continuing with the pro-private policies.

Now the Cellular Operators Association of India (COAI), representing the private telecom companies have demanded that the telecom industry be given the Essential Services status. they have also demanded tax  relaxations or waiving of tax for about 20 years. We have been demanding for Licence Fee relaxation for BSNL, but the government did not agree. But whether the government will agree, because it is the private companies which are demanding tax releif now.

It was expected that the National Optical Broadband Network (NOBN) project  which aims to connect more than 2.25 gram panchayats in the country would be entrusted with BSNL, since it is the most eligible with maximum infrastructure like 6 lakh route km of optical fibre  and staff for executing the same. The project will be financed by funds from USO. We also had demanded the government that it should be entrusted with BSNL. The DOT had also suggested that the work be entrusted with BSNL.

But, according to media reports, the government is now proposing to set up a Special Purpose Vehicle(SPV)  for implementing this project . The  SPV will be named Bharat Broadband Network Limited (BBNL) with an estimate of Rs. 20,000 crore  for this project. Public Sector Units like BSNL, Railtel, Powergrid etc. will be involved in this.

If this project was entrusted with BSNL, the ailing PSU could have improved its financial position and also done the job in a very efficient way, since sufficient senior and experienced staff is available. There is no doubt that the present move to deny BSNL this responsibility is due to pressure from certain quarters, especially private telecom operators, who are afraid of BSNL attaining a prominent position.

The Unions in BSNL and others have to demand the government  to change their present proposal/decision and entrust the scheme with BSNL which will benefit the country.

Consequent to the Supreme Court Judgement cancelling the 112 licences granted illegally in 2008, Etislat DB, whose licences have also been cancelled, has decided to close its business in India. All the 15 licences of the company were cancelled and as per the judgement, they have to cease the operations by 2nd June 2012, within 4 months of the judgement.  It is reported that the company has decided to stop operations as per judgement.

Some other companies have decided to appeal against the judgement. TRAI and DOT have so far not finalised their plan of action based on the judgment so far.

Additional spectrum to be released by the Defence Ministry depends upon the fact that an alternate optical fibre cable is provided to them by the DOT. The government will be able to get a lot of funds by auctioning these released spectrum. In the last spectrum auction, the government has got thousands of crore of rupees. Now DOT requires funds for constructing the alternate network for defence. BSNL is entrusted with the work. As per DOT at least Rs. 6,767 crore for the year 2012-13 alone is required. Further funds also will be required. But the finance ministry is allotting very less amount for the programme. As such the DOT has told the government that it will be difficult to complete the network in time.

In fact, the finance ministry wants to put the DOT and BSNL in trouble. If the full fund is allotted, BSNL will be able to complete it in time and get benefit out of it. Lack of funds will delay the project as also release of the spectrum from Defence Ministry.

The Government should immediatley allot the required funds for the project.

It seems that the Government is unable to finalise its plan for 2G auction as per the time limit given by the Supreme Court. The SC had given 4 months time for finalising the same.

There are a lot of issues interlinked with the same. The Government is preparing its National Telecom Policy-2012, which will have to spell out its method of allotting the spectrum and issue of licences. The 2G auction is connected with the same. Another issue is that the TRAI will have to give its suggestions/recommendations. Whether to cancel all the  licences issued after 2001 and before 2008 other than the 122 licences cancelled by the SC is to be considered. The government is also thinking about returning the licence fee also to the companies whose licences have been cancelled. In addition, there may be appeals against the SC verdict cancelling the licences.

The government itself is fully responsible to the present chaos in the telecom sector. In order to support the private players, all rules have been bent or discarded. Deep rooted corruption has taken place. To wriggle out is not easy.

The best way for the government is to have a transparent and correct policy. In that policy, the public sector and indigenous manufacturing should get priority along with the interest of the customers.

Shri J.R.Sharma, present Chairman, Telecom Regulatory Authority of India (TRAI) will be retiring in May 2012 after a stint of 3 years. Who is going to be the next Chairman. The incumbent to the post will be selected by a high level search-cum-selection committee consisting of Cabinet Secretary Ajit Seth, Principal Secretary in the Prime Minister’s Office Pulok Chatterjee, Secretary (personnel) P K Mishra, Telecom Secretary R Chandrashekhar and Advisor to Prime Minister Sam Pitroda . Applications have been invited already for the post of TRAI Chairman. The appointment will be for three years, at the pay scale of Rs 3.75 lakh per month.