Clear norms will allow telcos to function more efficiently
February 1st, 2012 - 9:02 pm ICT by IANSNew Delhi, Feb 1 (IANS) Telecom operators would be able to function more efficiently if there is clarity in regulatory and tax issues, a study said Wednesday.
It urged the government to focus on domestic manufacturing of telecom equipment in its new telecom policy as the market is dominated by foreign players.
“Clarity on tax related and regulatory issues could reduce massive litigations in this (telecom) sector and would thereby free operators to focus on their core business activities,” said the report, NTP (national telecom policy) 2011: A pragmatic view of the road ahead, by consulting firm Deloitte.
The study said while the policy aims to bridge digital divide between rural and urban population there were several political and regulatory and technological challenges, including substantial manufacturing base, lack of skilled workforce and absence of research and development.
“Telecom equipment market is dominated by foreign players with hardly any presence of domestic players,” said the study.
As per Ovum analysis, the total demand for telecom equipment including handsets for 2009-10 was Rs.547 billion while it is projected to be about Rs.1,080 billion in 2015-16.
According to the Boston Consulting Group, the current size of the telecom equipment market in India is around Rs.3,000 billion.
The study also said despite the government and the industry being critically dependent on telecom networks to support commerce in all major economic sectors, telecom security has not been able to keep pace with with these advancements.
“Telecom security is becoming more vulnerable to security breaches and has posted fresh challenges in network security, communication security, and communication assistance to law enforcement agencies.”
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- 80 percent telecom equipment to be home-made by 2020: Sibal - Oct 10, 2011
- Data, not voice, will now drive telecom growth: Report - Dec 13, 2011
- Indian telecom industry's revenue plunges 2.52 percent - Jun 22, 2011
- Industry welcomes draft National Telecom Policy 2011 - Oct 10, 2011
- Mobile number portability not much of a hit - Dec 04, 2011
- New telecom policy likely by June: Economic Survey - Mar 15, 2012
- Robust growth in telecom amid shadow of 2G case (2011 in Retrospect) - Dec 24, 2011
- Government to set up telecom equipment testing centre - Jun 30, 2011
Tags: boston consulting group, bridge digital, communication assistance, communication security, core business activities, economic sectors, law enforcement agencies, litigations, national telecom policy, new telecom, pragmatic view, rural and urban population, security breaches, skilled workforce, technological challenges, telecom equipment, telecom networks, telecom operators, telecom sector, telecom security