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| Regulation is not a Hindering Factor |
| Wednesday, 10 June 2009 | |
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"TRAI has never followed a policy of excessive regulation. The very fact that the telecom sector is growing exponentially is proof that the regulation has not been a hindering factor."
A positive regulatory framework can play a significant role in the growth of the telecom and broadcasting sectors. The objectives for 2009-10 for TRAI have to keep in view the development of the sector in the coming years. The key objectives would be to sustain and promote the growth of telecom industry' prepare the country for new developments in technology like NGN, 4G, LTE etc; build investor confidence; address inter-service operator issues; reduce the digital divide by increasing the tele-density in rural areas; increase broadband coverage; and protect the interests of consumers by ensuring better quality of service as well as improved consumer grievance redressal mechanism. We also have to look at various issues relating to the broadcasting sector including issues of convergence. With the new government in place, what is the plan of action for sorting out the regulatory issues related to NGN? NGN is essentially a managed IP-based network that supports variety of high-speed data intensive services including IPTV, HDTV, video-conferencing, VoIP, instant messaging, e-mail, and other packet switched communication services. Telecom operators in India are already moving toward NGN by implementing IP based core network. Migration to NGN is likely to be in stages and will require significant investment by telecom operators. In addition to investment, there would be regulatory and technological issues. We are looking into the various Licensing, Interconnection, and QoS related issues in consultation with the stakeholders and expect to shortly make appropriate recommendations and regulations/orders to ensure smooth migration to NGN. Spectrum management is a burning issue today. How do you propose to make it a more transparent, smooth, and fair process? By when can the industry expect the auction to take place? Spectrum is a scarce natural resource. It is necessary to ensure that it is used optimally, rationally, and efficiently. The authority will continue to strive in this direction. As far as auction of 3G spectrum is concerned, the government is seized of the matter and it is expected that the 3G spectrum would be made available to service providers soon. 20th September has been set as the deadline for service providers to upgrade their networks to support MNP. However, certain issues like portability charges remain to be addressed. How do you propose to take this forward? A consultation paper for determination of per port transaction charges, dipping charges, and the porting fee would be issued soon. Based on the comments from the stakeholders and our internal analysis, we shall determine these charges/fees. Regarding some other MNP issues too, TRAI is in the process of formulating a draft regulation, which would lay down the procedure for the porting process and the intra-operator business rules. It will be put up for the comments of the stakeholders before it is finalized. We expect to be ready with our decisions well before the due dates. IMRB's recent objective analysis has confirmed that telecom service providers are not meeting customer satisfaction benchmark. How will the regulator ensure better QoS and higher customer satisfaction? This is definitely an area of concern. We find that the exponential growth in the subscriber base is at times marred by insufficient quality of service in some areas. Several factors need to be addressed. TRAI has recently reviewed the quality of service standards and notified the Standards of Quality of Service. In these regulations, some new consumer-centric parameters have been added. We would closely monitor the performance of service providers and further follow-up with the service providers on deficient areas to enhance customer satisfaction. We are also examining various other measures to enhance the QOS by service providers. How is the lock-in period concept, conceived in the necessity of safeguarding against further questions raised on the pricing of the spectrum, in line with the need to promote consolidation? The Indian telecom sector is witnessing a phenomenal growth today, and is likely to grow further with the introduction of new technologies and services. To tap its immense and ever increasing potential, many new operators have entered the market. While on one hand, there are concerns on windfall gains through financial restructuring of licensee companies, there is simultaneously a need for adequate competition. TRAI had given its recommendations in this regard and government is seized of the matter. We need to keep a watch over the developments and see that such issues are resolved keeping in view various factors. The idea of letting market forces take control and let go of intrusive regulation has been around for sometime. What is your approach to this? TRAI has never followed a policy of excessive regulation. The very fact that the telecom sector is growing exponentially is proof that the regulation has not been a hindering factor. It is also acknowledged that Indian regulatory system has been very positive for the growth of the industry. Having said that, there would always be instances where individual operators may express certain concerns. These are constantly noted. TRAI will continue to engage in close and positive dialogue with the industry. All voices will be heard and sincere efforts will be made to harmonize the same in arriving at decisions. On the entry of new operators and how competitive pricing will affect the growth of the industry New operators have already been given licenses. There will obviously be issues of pricing given the increased competition as well as the fact that fresh subscribers will be more from the semi-urban and rural areas. The income levels of such subscribers will be one of the factors. TRAI will continue to monitor the pricing trends. Communications Today is a trusted partner of Communicasia 2009, one of Asia's biggest communications and IT exhibition and conference. Is there any message you would like to share with our readers? I understand that Communicasia 2009 is scheduled to be held from 16-19 June 2009 at Singapore and would be focusing on cutting edge technologies and their commercial implications, as well as feature fast growing technological sectors such as WiMAX, LTE, mobile internet, NGN, quad play etc. I am sure communication and IT professionals will benefit from the deliberations at Communicasia 2009. It is heartening to note that Communications Today, which has pioneered the cause of information sharing, is a trusted partner of Communicasia 2009. I wish Communications Today and Communicasia 2009 all success. |
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