Right Interference Helps, Wrong Interference Kills

Compared to what it used to be sometime back when the investors were never
too sure about anything, the mood is much upbeat now. This is what the results
of the VOICE&DATA Telecom Deregulation Audit on the National Telecom Policy
of 1999 and the draft of the Communications Convergence Bill 2000 show.

There are several key concerns in policy implementation and deregulation
which need to be addressed, but irrespective of that the industry’s confidence
is on the rise. There are a couple of reasons for that. First, the players now
are fairly sure that a huge demand exists. Second, the players now feel that
actually the entire pace of reforms is not that slow after all. Telecom
Deregulation Audit reveals that the pace of reforms is now ‘OK’ in most
areas as compared to ‘Not OK’ which was the general mood on most of the
issues just about a year back. Again a pointer to the fact that pace of progress
has picked up. One now believes that government’s involvement and interference
in telecom reforms is showing positive results.

However, all is not hunky dory. There are areas where involvement is proving
to be counter-productive. Take the case of MTNL which urgently needed Managed
Leases Line Data Network equipment to enhance its backbone for the ISP services.
Tenders were floated, and files kept moving from ministers to secretaries, and
after more than a year of decisions and counter decisions, and committee
reports, the tender was finally scrapped. One need not elaborate how much would
have MTNL suffered because of this, not to mention all the heartburn and hassles
the concerned vendors would have gone through.

A lot needs to be done as far as transparency in purchases is concerned.
Large service providers, such as MTNL and BSNL, need complete operational
freedom if they have to survive and do well. Ministerial interference in the
affairs of service providers will not only result in losses to the
organizations, but could also lead to wrong decisions which will affect their
customers too. Even the vendors will stop thinking straight. These are going to
have an adverse effect at a time when wrong telecom decisions will prove to be
too costly for the country, the government, as well as the end users.

Ibrahim Ahmad