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Chinese telecom gear makers should exit India: TEMA

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Preeti
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NEW DELHI, INDIA: The ardent campaigner of India's indigenous manufacturing TEMA (Telecom Equipment Manufacturing Association) believes that security sensitivity is yet to mature in the country, and it's time for Chinese telecom gear makers to exit India. TEMA ED Ashok Aggarwal speaks to CIOL's Muntazir Abbas on a range of issues. Excerpts.

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CIOL: Of late, there have been talks about controversies around TEMA. Tell us on this.

Ashok: Trade association must be driven by people associated with trade, and that's how organizations such as CII, FICCI and ASSOCHAM run. We have an agenda that domestic manufacturing must grow so that it could open up new horizons for India. We disassociate ourselves with others who have different plans. TEMA has taken up the issue of indigenous manufacturing two years ago in the larger interest of the country. This has raised concern nationwide.

CIOL: Is TEMA a member of government's recently-created joint working group?

Ashok: The government has formed joint working group headed by the deputy national security advisor. The government is working on how to strengthen security systems. Besides TEMA, this group has representatives from FICCI, CII and DSCI and others.

CIOL: Share an update on domestic manufacturing policy?

Ashok: Domestic manufacturing is a Cabinet decision and does not require Parliamentary nod. The new framework was approved by the Cabinet Committee on February 2012 and circulated by DoT, but unfortunately, the progress is slow.

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CIOL: Are you satisfied with preferential market access?

Ashok: The policy's PMA (preferential market access) has two aspects. Firstly, security is a concern. Chinese and European companies are creating networks in accordance with WTO provisions but security ramifications are not applied.

Secondly, even if such firms are allowed to manufacture in India, (on the pretext that they are incorporated in India) security painpoints remain unaddressable as the software control rest with them.

CIOL: R&D is other area where we are failing. What's your say?

Ashok: R&D activities within the country should increase to facilitate design and product development. Despite the so-called boom in India's teledensity, we have not done well in R&D.

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CIOL: Do we have capabilities?

Ashok: India and Indians have capabilities to design, develop and build complete network equipment. Indians have designed CDMA and GSM networks. Thousands of Indians work with multi-national companies such as Ericsson, Nokia Siemens Network, Alcatel-Lucent in their R&D facilities worldwide.

CIOL: Market availability is key to any industry, so it applies to indigenous manufacturing too?

Ashok: Domestic manufacturing is dying as it's not getting opportunities because operators are reluctant to buy from them, despite the fact that quality equipment can be obtained from them at reasonable price points. Contribution of manufacturing in GDP is close to 17 per cent. Ideally, it should be 25 per cent. GDP is swelling due to services industry today.

CIOL: But why are service operators reluctant?

Ashok:Operators are using Chinese equipment as they are not required to pay upfront cost. The entire arrangement is based on revenue sharing. These service providers and equipment vendors are in a win-win situation, but nation's security is at stake. Despite this, they are raking in huge profits. The government entities such as BSNL, MTNL and ITI are dying. No competition has been created. The government failed to fix loopholes in the public sector organizations. When government asks operators to pay tax or levies, they threaten to increase tariff.

CIOL: Chinese gear makers, such as Huawei, according to you are a threat to nation's security?

Ashok:The Chinese gear makers are the biggest threat to the country. It's no secret that China is claiming Arunachal Pradesh, but unfortunately, instead of fixing loopholes, we are just exposing our entire network to them. Security sensitivity is not mature in India yet. Wherever these Chinese vendors operated, they shiphoned off. They shouldn't be awarded with contracts either by DoT, BSNL or private players. It's time that they should exit the country.

CIOL: Why a healthy tele-density in rural India is still a challenge?

Ashok:Operators are not willing to go to rural areas as they have no interest. Rs 44,000 crore USO fund is unutilized. They have eaten up subsidiaries. Irony is that there are no takers for upper Assam, Naxal-hit areas and eastern UP, besides other remote regions. These are not commercially lucrative areas for them and are left at the mercy of state-owned BSNL.

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