National Telecom Policy '99--A look

Finally, the

much-awaited telecom policy is here. Though the government has decided

to introduce the concept of revenue-sharing with private operators

(as demanded by them), new telecom tariffs are still awaited.

Revenue-sharing

regime: The wish granted



Cellular
operators have been unable to pay their license fee, even the payment

of 20 percent of the dues has given them nightmares.

Under the revenue-sharing

regime, there would be an entry-fee, and the private operators would

share revenue with the Department of Telecommunications (DoT).

Operators have

been long demanding this. Reason--people have bought cellphones

but they are not using them due to high tariffs. Result--the operators

were not earning enough moolah to justify the license fee.

Telecom policy

brings a ray of hope. Whatever may be the entry-fee and revenue-sharing

ratio, it would be better than paying mammoth license fee.

Empowered

TRAI



There
was quite a bit of confusion over TRAI's role and power. DoT and

TRAI have had their share of arguments and disagreements over the

issue.

As far as the

role of TRAI (Telecom Regulatory Authority of India) is concerned,

the policy is a mixed bag. Though TRAI has been given the role of

arbitrator for resolving disputes between government and the operators,

it won't be making telecom policies.

Nevertheless,

TRAI's recommendations will be mandatory while designing policies.

Over all, TRAI has got more teeth now.

DoT's

fate



Department of Telecommunications (DoT) will become a corporate by 2001. The policy has put an end
to the department's monopoly on STD. Now private operators will

be allowed to provide STD services next year.

Telecom

policy--good or bad?



The
telecom policy brings a lot of hope as it touches almost all aspects

important for the growth of telecom services. The industry has welcomed

the policy with open arms. The policy makes a promise of growth,

let's hope it keeps the promise.