'100 per cent FDI in telecom will help telcos overcome debt'

NEW DELHI, INDIA: The incumbent telecom secretary and telecom commission chairman Mohammad Fayazuddin Farooqui has enormous challenges in his platter.

Despite this, Farooqui seems confident and seeks industry support. In a conversation with CIOL's Muntazir Abbas, he talks on key issues such as spectrum re-farming, delayed NOFN project, and revisiting preferential market access policy and penalties on telcos. Excerpts.

CIOL: Government wanted to abolish roaming charges absolutely by October this year, but it seems that you have succumbed to operators demands?

Farooqui: TRAI has already taken decision. The roaming charges have come down substantially, though absolute abolition remains our aspirational goal. Going forward, the regulator will come up with an update.

CIOL: There are penalties and levies to the tune of Rs 6,500 crore, including Rs 1,900 alone for EMF violations on telcos. Do you plan to revisit it, and create appellate model within DoT?

Farooqui: We have to see the element of profitability. If the nature of infringement is anti-consumer or anti-competition, then there has to be a penalty. There should be appropriate mechanism in place and natural justice would be done. In 2-3 months, we'll put up appellate process.

CIOL: Do you have any renewed stand on 3G roaming pacts? Is there any scope to reconsider Rs 650-crore penalty on Bharti Airtel?

Farooqui: The case is already sub judice. The penalty issue is also awaiting judicial intervention.

CIOL: With 100 per cent FDI, how much investment is expected as telecom industry is already entangled with Rs 251,000-crore debt?

Farooqui: We expect quite substantial investment. There are companies that have 60-70 per cent FDI, and this gives them a window of opportunity. In addition, there are some which are yet to commence operations in India and it would prove blessing for them. It could also help industry to overcome debt burden significantly.

CIOL: DoT is planning to put 2,200 Green towers in extremist-affected areas. What will be the project cost?

Farooqui: We have asked BSNL to undertake the required task. We have identified the locations for solar-powered towers that would remain charged for three days. The project would cost somewhere Rs 3,046-crore.

CIOL: For over a year, C-DoT is preparing monitoring system. Will it be an Indian PRISM?

Farooqui: No kind of interception is allowed until under special circumstances such as the national security. The idea is not to create it in an impersonal manner. To avoid misuse, the person who activates interception would not get access to what is being intercepted. As a transparent mechanism, nobody is allowed to do it in unauthorized way.

CIOL: The government is revisiting the Preferential Market Access (PMA) norms. What were the actual objections from certain international trade groups?

Farooqui: We are working on it as there were some reservations and apprehensions- and- we need to see how both the objectives are met, though at the same time, we are looking at facilitating domestic manufacturing.

The manufacturers feels that anyone couldn't produce end-to-end products as it's not economically viable for a country. We may also revisit preferred procurement volume percentage, and see how would it be reinforced.

CIOL: Are you planning to take a firm stand on Chinese gear makers such as Huawei and ZTE in view of recent security concerns?

Farooqui: I could not say anything right away, but yes, security is of paramount importance and it will be kept in mind.

CIOL: Is DoT planning any price cut for upcoming 1800 MHz auction in 20 circles? Will you reconsider spectrum re-farming?

Farooqui: TRAI has brought out consultation paper, and we shall wait for its report. Again-- we need regulator's view on spectrum re-farming.

CIOL: Government's ambitious NOFN project is apparently delayed?

Farooqui: Tenders have already been floated, while to procure GPON technology, we'll roll out tender soon. BSNL, RailTel and PowerGrid are engaged in trenching and ducting. We'll connect 100,000 gram panchayats (village blocks) by March 31, 2014, while the remaining work would conclude by the end of 2014.