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By Dr T.H.Chowdary * Director, Center for Telecom Management & Studies

By Dr T.H.Chowdary * Director, Center for Telecom Management & Studies * Chairman, Pragna Bharati (Intellect India), AP * Former Information Technology Adviser , Government of A.P Chairman & Managing Director Videsh Sanchar Nigam Ltd., Bombay T: +91 (40) 2784-6137/6667-1191(O)

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By Dr T.H.Chowdary * Director, Center for Telecom Management & Studies

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  1. By Dr T.H.Chowdary * Director, Center for Telecom Management & Studies * Chairman, Pragna Bharati (Intellect India), AP * Former Information Technology Adviser, Government of A.P Chairman & Managing Director Videsh Sanchar Nigam Ltd., Bombay T: +91 (40) 2784-6137/6667-1191(O) F: +91 (40) 6667-1111 (O)‏ Talk @ TANA Conference, USA: 2 &3 July '09 Apply, Apply – No ReplyToHaath haath mein telephone Gaon gaon mein InternetTransformation of Telecoms in India

  2. Spectacular Growth Since NTP-1994 Julyl'09

  3. Julyl'09 Wait & Wait..... • Telephonic address: “WAIT LIST” • Apply for the grandson • Consult: Sooth sayer when the Trunk Call comes • Post - It can't be slower ; Don't “telegram”

  4. Julyl'09 Waiting Hataao!Becomes: Waiters Hatao(like garibi/garibinko hatao!)‏ • Renew by priced /prescribed forms (Rs. 10/-) • 50% disappeared ‏ • Re-renew by putting a deposit of Rs.1000/- • 50% disappeared • Own Your Telephone (OYT) First Rs. 3000; revised to Rs.8000/-) • 25% disappeared‏ • Tatkal Rs.40,000 deposit

  5. Julyl'09 Wrong Numbers 1/2 • Dead Telephones • Dead phones & Burglary in Mumbai “That is why I say, the burglar must be from out of town. He cut the telephone thinking it works” • Inflated Bills “Pay First: Complain later - “Fiat car for sale to pay telephone bills”‏ • “Look! IT may be raining outside... “No sir! There are only clouds!” • “If it is wrong number why are you answering?”

  6. Julyl'09 Wrong Numbers 2/2 • Unsure in any Need. (Unsafe At Any Speed: Ralph Nader about US Cars) • “Lots of phones on the table. This for incoming calls That one for outgoing This for wrong number That farther one for cross talk That beyond for music And that last one – dead for 3 months • Cables dead; Tent over a trench,for months “men@work” In order to not inconvenience people frequently, we have decided to leave it like that permanently”

  7. Julyl'09 Rajya Sabha Question • M.P: What steps are government taking to save people from wrong numbers, cross connections, dead phones, inflated bills, delayed trunk calls, call drops, very old telephone directories? • Minister: C.M.Stephen • “There is no compulsion to have a telephone. One is at full liberty to surrender”

  8. Julyl'09 Monopoly's ills 1/2 • Unbridled because it was by a government department • Socialism meant “telephone is for rich man, so fewer the better; the worse it works, less the profiteering so, little investment & bad maintenance • Raise prices to generate capital funds • 50% of billed amount not for service • Plan to generate jobs, not for work

  9. Julyl'09 Monopoly's ills 2/2 • One employee for 12 telephones in the 1980s in DOT • (Now 1 for about 300 in BSNL; 1 for 3000 in P-Telcos)‏ • No new services like mobile phones, e-mail, FAX; radio-paging, Internet, Video conferencing - all these are for the rich; • inadmissible in Nehruvian Socialism

  10. Julyl'09 Bring down price to increase affordability (a) Affordability A X TSP PCI Time • A PCI/ Tele-Service Price • PCI: Per Capita Income • TSP: Telephone Service Price • A: Affordability

  11. Julyl'09 Cost of an year's telephone service vs: PC GDP • Affordability increasing rapidly. • The annual cost for a basket of services was 2.5 times PCI in 1951; equal to PCI in 1994 and now 0.10 in 2009! • So “Haath mein telephone: Carpenters, Vegetable Vendors, Milkmen, Mason, Plumber, Driver, Mazdoor, Electrician, Beggars ( in Tirumala, Shirdi..)

  12. Julyl'09 Telecom Demonopolisation (1/2) • 1984-'89: Rajiv Gandhi ended State monopoly on equipment production & launched C-DOT • 1991: P V Narasimha Rao began ending State monopoly on services. (socialism=state capitalism)‏ • 1994: National Telecom Policy ended case by (suit) case licenses • 1997: Statutory Telecom Regulator, TRAI • May-Aug 1998: BJP-led NDA's IT &SW; Internet policies

  13. Julyl'09 Telecom Demonopolisation (2/2) • NTP 1999 • Regulatory reform TRAI, TDSAT • NTP '99 saved dying P-Telcos by migrating them to revenue share & not upfront crippling licence fee payment unrelated to network & revenues • Level-playing field by corporatising DOT's services into BSNL in Y 2000 and end to STD/ISD monopoly. • Private capital, Indian & foreign (upto 74%)

  14. Julyl'09 Beneficences • Printing • Roadways;Railways; Electricity; Automobile; Telegraph; Radio/TV; Computer • Machines extended man's physical power • ICTs & telephones are extending mind/knowledge power • Machines for work Men to think, divine & design • Numbers replace names • Convergence/ multi functional cell phone • Telecoms become electronic-photonic infrastructure for storage and transport and exchange of electronified information.

  15. Julyl'09 Numbers exceed names! (population)‏ • Nordic countries, Italy, UK,France Japan, Korea • Delhi, Mumbai.... • Some persons have cellphones from different companies • Delhi, Mumbai, Bangaluru... are exceeding 100% teledensity.

  16. Julyl'09 Investments Poured in (1/2) • P-Telcos put in Rs. 1,25,000 cr • BSNL/MTNL share reduced to 28% • Annual investment in the Sector > Rs. 40,000 cr/P.A • Annual revenues Rs. 1,40,000 cr • More than Rlys & Electricity • Less than only the oil & Gas Sector • Over 40 P-Telcos in fierce competition. • Many more P-telcos got 2G licenses • WiMaX & 3G licenses yet to be given

  17. Julyl'09 Investments Poured in (2/2) • Telecoms transformed into globally connected electronic-photonic highways system for information enabling Bharat as IT, SW & ITES supplier to the world • Telecoms is the most lucrative portfolio for Ministers Very scandalous licencing & PSU purchases. • DOT coveted by Regional , “Secular” parties ( Rlys, Highways, Seaports, Mines, Fertilisers too. • 55 persons held the portfolio since Independence ( i/c P.M, Vajpayee) • Those remembered for distinction are: • Rafi Ahmed Kidwai, Jagjiwan Ram, C.M.Stephen, Sukh Ram, Mahajan. Arun Shourie

  18. Julyl'09 Unintended Consequence • Telecom Equipment Production nearly dead • R&D neglected • India imports “know-how” not only from Europe/Korea/Japan but also China

  19. Julyl'09 Mis-use/ Misbehaviour • Cell phone talk in public places- roads,waiting rooms; in lifts; buses; trains; in queues; walking & talking • Addition of fiddling, profase SMS-ing • Vulgar ring sounds, ring backs • So smell, tantalisingly • Thievable • Annoyance & public nuisance increasing

  20. Julyl'09 What are the services not provided • No Telephone (Directory) Services BSNL's by BSNL from BSNL numbers only. • No P-Telco publishes whom to approach for help / complaint / grievance • Executive's Name • Tel No / Mobile No / e-mail • BSNL Directories used to publish this information i/c hierarchy • P-Telcos don't hold Telephone Adalats ( i.e like BSNL does)

  21. Julyl'09 What is yet to be realised • Internet to every village • Internet to every Educational Institution & class room • Broad-band to every town/village • Total territorial coverage • Intellectual property creation (R&D); • Manufacturing (China,Korea recently; Japan earlier)‏

  22. Julyl'09 Dhanyawad:Thank You

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