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Telecom policy may push for complete liberalisation

This means that a call originating from a private network in one state can be transmitted to a network in another state bypassing DoT's network.

T O D A Y

• Pentamery • More liberalisation • Satyam-GE deal • Apple mergers

This will benefit the cellular and basic service companies who have networks in adjoining states. The companies who are likely to be benefited include Reliance, Birla AT&T, Essar, and Koshika.

The draft NTP '98, prepared by the sub-committee of the Group on Telecommunications headed by Jaswant Singh, envisages allowing existing basic and cellular operators to interconnect with adjoining circles directly, thereby creating a linked nation-wide backbone network.

Sources say, majority of the members of GoT are in favour this policy of complete liberalisation.

The draft policy envisages opening up of the domestic long-distance services for private operators. Thus, they would be allowed to set up nation-wide backbone networks. And under this policy, the existing basic and cellular operators would be allowed direct interconnectivity.

The charges to access a backbone network by another carrier would be decided by the Telecom Regulatory Authority of India.

GoT has felt that there would be a great demand for the bandwidth in near future in view of the increasing use of Internet applications.

GoT is in favour of allowing private operators to provide Internet telephony that is emerging as a cost-effective solution to meet the ever-growing demand for telephones in the country.

Many companies abroad are providing Internet telephony.

The draft NTP '98 has noted: "There is a strong need to develop adequate bandwidth in the country to take care of the explosive growth of IT and data transfer applications which are likely to happen within the next decade.''

The new policy, if implemented, would benefit the existing operators who have networks in adjoining states. Reliance, which is operating cellular services in Orissa, West Bengal, Northeast, Assam, Bihar, Madhya Pradesh and Himachal Pradesh will benefit significantly.

Other companies to benefit from this policy include Birla-AT&T, which is operating cellular services in Maharashtra and Gujarat, Koshika, which is operating services in UP and Bihar, and Essar which is operating cellular services in Rajasthan, Haryana and Delhi. Essar is a licensee of basic services in Punjab.

Earlier:

Peep show
Here's a keyhole view of a sexy new telecom policy, slated for a month-end unveiling.

- Compiled from the Indian media

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