Skip to main content

TIA urges India to change policies

The U.S. telecom industry has urged the Indian government to reevaluate its policies with regard to capitalization requirements and telecom licences application fees as the latter reduces the amount of resources available to service providers to invest in building out their networks and connecting India’s vast population.
“TIA urges India to reevaluate the basis for license application fees, capitalization requirements and bank guarantees as it applies to telecommunications service provider licences,” the Telecommunications Industry Association said in a memorandum submitted to the U.S. Trade Representative.
TIA stated that the body is concerned over discriminatory policy proposals that India is contemplating aimed at increasing manufacturing and innovation in the ICT sector, and that this signals a reversal of the generally open-market and pro-competitive policies India has taken in this sector.
“Specifically, TIA and its members are very concerned about the recommendations proposed to the Department of Telecommunications by the Telecommunications Regulatory Authority of India to encourage domestic manufacturing of telecommunications equipment in India. Preference policies, quotas, and other trade barriers run counter to the market opening reforms that India has implemented and which provided the catalyst for the unprecedented economic growth the country has experienced in recent years,” the letter says.
The letter further states: “TRAI bases its recommendations on establishing a preference program for domestically manufactured products on a belief that government licensed entities, including private telecommunications service providers, can be treated as government entities as it relates to their procurement practices. This assertion is clearly contradicted by the WTO’s rules, which state under Article III of the General Agreement on Tariffs and Trade (GATT) that generally requires that imported products be treated no less favorably than domestic products. The TRAI recommendations’ assertion that entities licensed by the government can be categorized as ‘government’ for the purposes of procurement policies is not supported by the WTO.”
“In addition to the negative consequences for meeting India’s ICT connectivity goals and hampering its ability to benefit from global collaboration, these policies run counter to India’s longstanding international trade commitments under the WTO, its national treatment obligations under the GATT, and its G20 pledge in 2008 not to increase barriers to trade,” TIA states.
The industry body also refers to a proposal drafted by India’s Planning Commission that would require 30% of all electronic procurements by the government to be reserved for domestically manufactured products. The said proposal is under review of the Indian Cabinet but if implemented, it will undermine the country’s ability to innovate, and will impose discriminatory and unrealistic requirements on companies seeking to sell to the Indian government, TIA argues.
“The proposal will increase the Indian government’s own costs by restricting procurement options, and will violate critical commitments that the Government of India has made to resist trade and investment protectionism,” TIA’s letter states.
The letter also notes that India continues to be one o the world’s fasted growing ICT markets despite global economic slowdown.
Since 2006, India’s total wireline and wireless telephone subscribers have increased from approximately 164 million to over 846 million, representing almost 416% growth in five years.
Broadband (> 256 kbps) has grown over 500% since August 2006 to over 11 million subscribers, yet numbers of connections remain low relative to the population.

Comments

Popular posts from this blog

Telecom Network Evolution in Last decade (2011-2020): Legacy to Network Cloudification

Telecom Network Evolution in Last decade (2011-2020): Legacy to Network Cloudification The Telecom Network space has changed immensely in the last decade and the journey towards network cloudification  has been definitely very interesting to watch with massive adoption globally in recent years. Network Cloudification at a very high level is basically converting actual network functions(routers,firewall, Evolved Packet Core(EPC), IP Multimedia Subsystem(IMS),etc) into a software package and deploying them on a network cloud (public, private, hybrid,on premise) running using commercial IT servers. Having been part of the Telecom industry for more than 9yrs, I have been fortunate to work on legacy setup as well as Telco NFV & Cloud environment during this tenure with focus on Telco technologies & use cases like 4G LTE, Voice Over LTE (VoLTE), virtualized enterprise offerings and 5G lately. Starting in the industry back in 2011 I was introduced to the Legacy network setup

Network Transformation: TM Forum's Open API & Open Digital Architecture (ODA)

Network Transformation: TM Forum's Open API & Open Digital Architecture (ODA) Majority global operators have been on the journey towards network transformation / cloudification for only 4-5 yrs now and due to challenges and complexities involved with network virtualization and cloudification, relatively very less progress has been made. However the speed of transformation has caught pace globally in the last 2 yrs as most operators plan for implementing 5G in their networks. In order to ease the transition , many open source projects and industry associations have got created over the years with goal of easing virtualization journey for vendors & operators. One such industry association who has been leading the efforts for Digital Business Transformation has been TM Forum. 2 initiatives of TM Forum to ease network transformation include OpenAPIs & Open Digital Architecture(ODA).