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Policy & Regulation
Telecom sector to gain from stable govt
TT Correspondent |  New Delhi |  18 May 2009

The simple majority gained by the UPA in India''s recently concluded Lok Sabha elections paves the way for positive outlook and much needed government push in key areas of concern to the telecom industry.

 

The new political set-up may result in Congress staking claim for the telecom portfolio, a sector which has not witnessed a Congress leader as minister for quitesome time now. Since the 2000's the telecom sector has witnessed the ministry being headed by BJP and DMK leaders. This was the same time that the industry went on a boom. Congress will certainly like to contribute to the growth of the sector as well. While the ministry appeals to DMK as well, some of whose leaders have immediate interests in sectors related to the ministry, the Congress may appoint one of its younger leaders to head the ministry. Jyotiraditya Scindia can fit in this role as he was the Minister of State for Communications in the last government and is well versed with the sector.

 

To start with, the new telecom minister is expected to take a final call on policy guidelines for 3G and wireless broadband services in the country. The last tenure of the UPA government failed to reach a consensus on the policy guidelines for these services. The reason was that the different ministries i.e. Home, Defence and Telecom where headed by leaders of different parties and there was always a trouble to work as a collective unit.

 

It is also expected that consensus pertaining to vacation of spectrum by the defence forces can be reached now.

 

Also with less dependence on allies, the Congress Party can expect to be less bothered by political leaders like Amar Singh who had pressurized the government to retrieve additional spectrum from incumbent GSM operators while extending support for the nuclear deal.

 

Overall the industry can expect relatively quick policy-related decisions and reduced delays over issues concerning the industry.

    
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18 May 2009(IST)  
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