Keynote Address by Shri Ram Vilas Paswan, Hon'able Minister of  Communications at INFRANET 2000 (15.12.2000) at 9.30 AM

Mr. Shyamal Ghosh, Mr. Rana Kapur, Dr. Patel, Mr. Vijay Kapoor, Mr. Sumeet Singh, Mr. Srivastava, distinguished delegates, Ladies and Gentlemen.

At the outset, I would like to congratulate CII and IDFC for organizing this prestigious Conference.   I would also like to sincerely thank them for giving this opportunity to attend it today.   This is a unique and timely initiative CII has taken during the last two years.   This brings together all the key players in infrastructure development, including the financial institutions and State Governments.   I have no doubt that your deliberations will go a long way in promoting socio-economic development of our people.

Today, infrastructure is the key to socio-economic development.    Rapid development of various sectors like telecommunications, roads, power railways, ports and airports etc. is critical to our economy.   As regards telecommunications, it is known as the infrastructure of infrastructures.   Today, telecommunications is the integral part of our socio-economic fabric.   It impacts our daily life and business.   In an information based society, telecommunication is critical to our social and economic goals.   In future, it is going to be even more important.   New applications like tele-education, tele-medicine, e-business, e-goverance, etc. are making distances and travel less necessary.   In a country of our size and diversity, it is all the more nessary to have modern, effective and affordable means of communications.  In fact, our vision is "Communications - any time, anywere and to anyone".   We are marching towards this vision with determination.

We have taken a number of measures during the last one or two years to carry out bold reforms in the telecom sector.   Over the past few months, I have vcisited several countries and in fact, had taken with me a delegation from CII also, during my visit to France, Sweden and Finland.   During all these visits and interaction with Government and industry there, there was a wide and genuine appreciation of the bold telecom reforms in India.   Yesterday, US Ambassador come to call on  me and conveyed their appreciation of these reforms.

It may be useful to recall what has happended.

•  First, we announced and intoduced NTP'99, a new world-class policy governing the growth and development of the Telecome Sector.
• Second, we carried the process forward by migrating from a fixed license regime to a revenue sharing regime.
• Third the role of the Regulator was clearly defined and strengthened and a Telecome Dispute Appellate Tribunal was set up for time-bound resolution  of telecom disputes.   We have also appointed the Chairman and Members of the Tribunal.
• Fourth, detailed policy guidelines have been issued with regard to opening up of national oong-distance.   Applications received are being processed most expeditiously.

         All the 11 applications received so far for IP-I (Infrastructure Provider, Category I) have been cleared and granted      registration.   Out of the 5 applications received for IP-II (Infrasturucture Provider, Category II, for end-toend bandwidth), 3 applications have been cleared and the remaining are being cleared very soon.

• Fifth, 100% Foreign direct investment has been allowed for providing infrastructure in terms of dark fibre, Internet not providing gateways, e-mail and voice-mail.
• Sixth, domestic companies have been allowed to set up their own landing station and international gate-ways.
• Seventh, Multipoly has been introduced in basic services and detailed guidelines will be issued very soon.
• Eighth, guidelines for introduction of fourth operator in Cellular Industry are being finalized and will be issued very soon.

          There has been a vry rapid growth in Cellular telephony during the last few months, both in terms of number of subscribers as also volume of minutes and the trend is extremely positive.

• Ninth a convergence bill is being drafted.
• Tenth, the Department of Telecom Services have been corporatised from 1st October 2000, the date as mentioned by us.
• Eleventh, the opening of international long-distance has been brought forward and now this would be done by 2002.
• Twelfth, Sanchar Sagar project has been launched and a number of measures taken to expand bandwidth availability, and make it available on demand. Rates have also been brought down.
• Thirteenth, rates for telecom services, both domestic and international have been sharply reduced.   Rates of Internet services have also sharply come down.   With increasing competition, these will come down even further.
• Fourteenth, an ambitious scheme of Sanchar Dhabas at Panchayat level has been launched to take these facilities to village level.

          I could go on and on, so much has happened over the last few months.

The policy environment could not have been better.   But yet, there are many issues that concern us and that need to be addressed.

First is the tele-density - Current tele-density is only about 3 per 100.   This also is the result of rapid growth during the last 2-3 years.   However, it is still low.   Moreover, this hides the sharp divide between the urban tele-density and the rural tele-density.   If we have to take the tele-density uuto 15 per 100 by 2010, a very large infrastructure is required.

There are over six hundred thousand villages in India and of these, many village do not even have telephones.   Some village had telephone system based on MARR technology but more than half of them do not work.   Therefore, if we have to provide a phone in every village, your are talking of infranet, I will refer this as tele-net, then there is a very important role for the private sector to play.   We had very high hope and expectations from the private sector, but unfortunately, each of the six operators in basic services who had been licensed to provide telecom have not met their commitment in terms of village telephony.   While some have agreed to pay the penalty for not doing so, or now taken up this process in a limited way,  this will not address even the fringe of the problem of connecting all villages.   Realizing that the private sector has not been able to perform this task of connecting villages, the Department of Telecom has taken the initiative and achieved 100% coverage in four  States.  It is to be relized that it is not only a social need but also an infrastructural need without it, taking other infrastructure to rural areas will be retarded.   We have to install over a thousand phones a day upto the end of 2001, if we have to achieve the goals of NTP'99.   This is an ambitious task and all of us have to lend our shoulders to it.   We have also to come out with cost effective and location specific solutions.

The government based on the recommendations of TRAI would soon be announcing the programme for additional operators both in basic and cellular services.    We have to all work together in the interest of consumers and rapid growth of teledensity.   It would be useful of CII can bring together all segments of telecom industry to speak with one voice, in the best interest of consumers, and rapid growth of teledensity and modernization of infrastructure.

The third area relates to manufacturing.   If India has to achieve the required tele-density, we have to have a strong domestic manufacturing base in India.   Even small countries like Sweden and Finland are leaders in the world for manufacturing.   Why cannot India be a global telecom-manufacturing base?    India is a large market in itself.   However, with its low cost of infrastructure and human resources, joint endeavours should be made to develop it as a major manufacturing hub to meet the need of the entire region.   In your deliberations, later this morning, I would request your to think about this and I look forward to receiving concrete suggestions on how this could be done

Since many States are present this morning, I beleieve, I would like to throw up an idea for consideration.   I know Parliament is in session, but this is not a Policy decision.   This is only an idea.  Given that we have the convergence happening, can the private sector and the State Governments work out an initiative to set up a commercially viable telecom centers at the village and district level so that the village telephony is not seen as a revenue-draining proposition but as a revenue earning operation.   My Ministry and both BSNL and MTNL would be happy to partner such initiatives.

Finally, the discussion of the tenth plan is underway.   What is the Vision of India?    How does industry see the communications sector five years and ten years from now?     What are the new technologies that need to be addressed?    What needs to be done in our R&D activities?     NTP 99 has laid a strong emphasis on R&D, and during my visits to Sweden and Finland, I saw a substantial chunk of revenues of these companies being spent on R&D.    We should evolve joint strategies to catch up in this activity now.   Then, we have a huge unemployment problem, and simultaneously, shall require huge skilled and semi-skilled workforce.   What can be done about it?    How can we train and re-train the large work force in BSNL and MTNL?    What would be the funding required and how can BSNL and MTNL raise these finances without going to the Finance Ministry for funds?

These are some of the issues were I would like specific suggestions emanating from your deliberations in order that industry and Government together ensure that India has the best Telecommunication Network in the world in the years to come.

Friends, I wanted to share these thoughts with you.   I am sure your deliberations will be very fruitful.  I offer your greetings and best wishes.

Thank you