6th September, 2002
Ministry of Communications & IT  


FASTER CONFLICT RESOLUTION IN TELECOM SECTOR VITAL FOR GROWTH & EXPANSION

PRIVATE SECTOR NEEDS TO PERFORM SOCIAL OBLIGATIONS IN TELECOM – SHRI MAHAJAN

SHRI MAHAJAN RECEIVES ‘TELECOM MAN OF YEAR AWARD’ FROM PTC FOUNDATION


Minister for Parliamentary Affairs, Communications&IT, Shri Pramod Mahajan has said, for the Telecom Revolution to expand further, become accessible and more customer oriented, it was extremely important to expedite a process for faster conflict resolution on issues in the telecom sector. The existing competitive environment within, had created natural anomalies within the system, the redressal of which required agencies which were faster in resolving problems than the normal judicial channels. In the current scenario, our experience had shown that no party was willing to accept a lower Court’s decision on any given verdict. Hence, the very issue of faster resolution of problems remained unsolved. Shri Mahajan stated this in his address to the PTC Foundation where he was conferred the ‘Telecom Man of the Year Award’ here today.

The Minister in his address remarked that the current market economy structure too had its limitations and that a 100% market economy orientation was a misnomer. Within the system, it was vital to locate the social obligation parameters and this was equally true for the telecom sector. Over the years, it was the Government’s experience that the areas/States/regions where remunerations were poor, operators in the telecom sector were reluctant to perform their social obligations. He called upon the operators to fulfil their contractual obligations as per the telecom policy towards social obligations that had been conferred to them by the Government at the time of signing of licenses.

Shri Mahajan also emphasised that the opening up of the Telecom sector had given rise to problems due to changing technologies, increasing competition, changing laws and the drive towards increasing profit margins. On the issue of technological changes in telecom, Shri Mahajan said that changes in technology had to be balanced with other nodal points within the telecom sector. For e.g., Minister remarked that technological changes had to be balanced with the letter and spirit of laws governing the telecom structure. Giving an overview of the emerging scenario in telecommunications, the Minister said that as everything today was market driven, the bottomline being that there was no loyal customer for any player in the sector.

Elaborating further, Shri Mahajan said in this situation, it was important that Government players ought not to be viewed as the ‘Elder Brother’ in telecom vis-à-vis private players. Opportunities had to be given to all on an equal footing. In this regard, the Minister remarked that on several occasions whenever private operators indulged in aggressive pricing and marketing on telecom services, it was viewed as ‘Customer Oriented’. On the other hand, whenever the Government initiated measures on similar lines, it was viewed as ‘Predatory’.

Speaking earlier on the occasion, Chairman, TRAI, Shri J.S. Verma highlighted the issues concerning the telecom sector and spoke of the need to strengthen areas necessary to sustain the growth levels that had been achieved in the sector over the years.