5 challenges before new telecom secretary Farooqui

NEW DELHI, INDIA: The telecom industry, plagued with multitude of issues, is posing many challenges to the new telecom secretary, MF Farooqui. At a time of sectoral overhaul and amid industry-wide uncertainties, his appointment could in a longer term lead to fructification.

This is the time when telcos are mulling transformation from voice to data, despite disinterest among foreign investors and bankers, and government is grasping over loosely regulated industry. Though the sector has gone through a mayhem over the last couple of years, it has enormous potential waiting to be tapped.

1. Spectrum allocation

Farooqui has to strike a balance between industry verticals such is the case of CDMA and GSMA players. He needs to accost policy directives that lead to varied perceptions, besides national security issues like location-based services, litigious 3G roaming pacts and spectrum management. Adherence to the Supreme Court order to auction 1800 MHz spectrum is another crucial aspect.

This is just the beginning for Farooqui. As he served as the Consul General of India in Jeddah, Saudi Arabia, (between Jan 1993 - Jan 1996), he could trigger a prelude to new investment climate to revive the industry. Bahrain's Batelco is already mulling over controlling stake in Anil Ambani-owned Reliance Globalcom.

2. One-nation-free-roaming

At the helm of affairs, Farooqui has to maintain an equipoise between the industry and the government's consumer-centric rhetoric. As a part of the National Telecom Policy 2012, he has to achieve one-nation-free-roaming and one-nation full mobile-number-portability in addition to facilitating the one-nation-one-licence regime, leading to market consolidation.

3. Fiber optic network

With a target of affordable 175 million broadband connections by 2017, Farooqui also needs to work towards ambitious national fiber optic network (NOFN) which envisages to connect 250,000 village panchayats (blocks). For this mega project worth Rs 20,000 crore, enticing private players would be a mammoth task in itself.

Farooqui has to fulfill policy obligations such as facilitating ecosystem for design, R&D activities, IPR creation, testing and standardization of telecom equipment to meet domestic demand as well as value-addition targets. The merger of ailing state-owned BSNL and MTNL and a rework on voluntary retirement scheme, is already on his platter.

4. Battle between DoT & GSM players

Furthermore, Farooqui has to oversee various crucial litigation in the apex court and at tribunal-levels. He has to sort out an amicable solution between the DoT and fuming GSM players such as Vodafone, Bharti Airtel and Idea Cellular on multiple issues, including licence extension, without affecting country's revenue.

 

5. Spectrum refarming

Speaking to CIOL, COAI director general Rajan S Mathews said that there are some key issues that need to be addressed to take the industry forward. "Ensure compliance with the SC order to auction all 1800 MHz spectrum as soon as possible," he said. This, Mathews said, can be achieved if spectrum reserve prices are reduced by 80 per cent.

COAI also believes that the new secretary should refer the whole matter of spectrum refarming and spectrum pricing to TRAI for recommendation along with international norms. "Financial health of the industry should be improved by reducing licence fee and spectrum usage fee to 3 per cent and 1 per cent respectively," he said.