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$ 38-bn investment in telecom sector seen in 5 years

Telecom infrastructure in India is being expanded and modernised on a massive scale to meet the requirement of information technology sector as the country is poised to become an IT superpower soon, Communications Minister Ram Vilas Paswan said in London on Thursday.

An investment of $ 38 billion is expected in the next five years considering the projected increase in tele-density from existing 2.7 per 100 to 7 per 100 by 2005, Paswan told a meeting of British telecom companies.

Representatives of the British Department of Trade and Industry and senior officials also attended the meeting.

Paswan, who had gone to San Francisco to attend the 25th annual meeting of the US-India Business Council, halted in London to address the British telecom companies before leaving for Delhi.

Paswan said many steps had been taken by the government to open up the telecom sector to private investment and provide a level-playing field. Paswan said that the regulatory regime had been strengthened through the recent Telecom Regulatory Authority of India, or TRAI, amendment whereby a telecom appellate tribunal headed by a retired Supreme Court judge has been set up with vast adjudicatory powers.

"The Department of Telecom Services that has been carved out of the erstwhile Department of Telecommunications is being corporatised on October 1," he said.

He said a long distance telephony is being opened very soon for investment by private sector and the policy details will be announced shortly.

There would be a number of new investment opportunities available for the basic and mobile telephony circles.

Besides the $ 38 billion, there would be a further investment of $ 70 billion by 2010 when the tele-density goes up to 15 per 100.

"All this will open up tremendous and remunerative opportunities including the manufacture of equipment," he said.

He said a bandwidth advisory committee and an NRI advisory committee are being constituted shortly in connection with expansion and modernisation of the telecom sector.

For effecting further efficiency and transparency in spectrum management, another committee will be constituted for the purpose soon, he said.

Paswan exhorted the British telecom industry and NRIs to invest in Indian telecom sector in a big way and share the growth.

Participants sought clarifications about the new policy regime, revenue sharing structure and tariff pattern.

Some of them also offered cooperation in the fields of education and training in telecom sector and share their own experience. Some others referred to the possibilities of developing joint sector operations for regional markets.

PTI

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