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FCC to help set up India's Telecom Regulatory Authority

India's Department of Telecommunications Secretary A V Gokak led a team of his officials to wide-ranging talks with US' Federal Communications Commission Chairman Reed Hunt. The focus, however, remained on ways to improve telephone services in India.

Gokak told reporters here today that ''matters of mutual interest were taken up'' and the FCC has given some concrete suggestions on how India could adopt the Chile model to expand its telephone network to rural areas.

Chile had had till recently tremendous problems with telephone services. Then the government auctioned lines, giving them away to those who quoted the lowest subsidy. The scheme worked well and Chile was able to extend its telephone network, Gokak was told.

The FCC also promised to help streamline the functioning of India's newly set up Telecommunications Regulatory Authority. With the assistance of trained personnel, economists and researchers, the FCC is willing to provide training, Gokak said.

Regarding the FCC's proposal for a uniform rate of 23 cents for long distance calls, Gokak said it is difficult for developing countries to adopt it. ''Many policy issues are involved and the economic and social ability of a person to pay is also a matter to be considered.''

The present rate in India is 68 cents per minute and ''we have to find a cost-based tariff structure. This issue has to be settled bilaterally'', he added.

Gokak claimed that the de-licensing policy has led to an increase in India's telecom equipment manufacturing capacity. And a number of foreign companies like the AT&T, Siemens and Ericssons have shown keen interest in the sector.

''The Indian telecom equipment industry is a modern industry and has state of the art technology," Gokak assured.

He said export of telecom equipment in 1996-97 was about Rs 3 billion and foreign direct investment in the industry has been around Rs 197 billion. For basic and cellular services, such investment stood at Rs 172 billion.

Gokak denied that the government-owned Videsh Sanachar Nigam Limited faced an over-staffing problem. He said all recruitment at the administrative level had been on hold for some years and the only appointments being made were in the technical departments.

He claimed that the Telephone Adalat, a redressal forum, had done a good job of winning public confidence.

Gokak, who recently visited Hong Kong, Singapore and New York in connection with the global depository receipts issue of the VSNL, also met Boyna McCann, US coordinator for international communication and information policy in the state department, here.

UNI

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