COAI opposes Trai view on mandatory use of Indian equipment

GSM service providers' lobby group COAI today opposed telecom regulator Trai's recommendations mandating the use of made-in-India equipment in networks.

PTI | April 21, 2011



GSM service providers' lobby group COAI today opposed telecom regulator Trai's recommendations mandating the use of made-in-India equipment in networks.

It appreciated some parts of the recommendations like providing fiscal incentives for promoting domestic manufacturing, but opposed the mandatory use of those product by telecom operators.

"Mandating the use of Domestically Manufactured Products (DMP) is contrary to the NTP (National Telecom Policy) which provides for technology neutrality, flexibility of choice and openness to provide the best of telecom services using state- of-the-art equipment," said Rajan S Mathews, Director General, Cellular Operators Association of India (COAI) in a statement.

"Such mandatory requirements may also put service providers at risk of not meeting quality of service requirements mandated by Trai, equipment obsolescence and open the networks to other security risks if such products are not of world class quality," Mathews added.

According to Trai, only 12-13 per cent of all the locally made products, built with the aid of foreign vendors in 2009-10, were used in the sector. However, purely India-made products formed just three per cent of the total market.

Trai has categorised domestically manufactured products in two parts -- Indian Manufactured Products (IMP) and Indian Products (IP).

The Authority defined IMPs as those products, in which intellectual property rights (IPRs) reside outside the country and Indian Products, which have IPRs here.

Trai has recommended that the share of IMPs should gradually go up by 15, 20, 25 and 30 per cent in the financial years 2012-13, 2014-15, 2016-17 and 2019-20 respectively. For IP, it has given slabs of 15, 25, 35 and 50 per cent in the same set of years as in the case of IMPs.

COAI said the government should implement these recommendations for state-run telecom companies namely BSNL and MTNL.

"If the government believes that mandatory quotas are a proper policy initiative, then COAI strongly recommends that this be applied to the PSUs (MTNL, BSNL) where government has a significant ownership interest and leave the private service providers to follow market forces," Mathews said.

Meanwhile, the Department of Telecom's internal committee, under Additional Secretary (Telecom), is studying Trai recommendations for preparing a Telecom Equipment Manufacturing Policy.
 

Comments

 

Other News

BJP set to capture West Bengal

The political map of the country is set to be redrawn with the BJP set to win the West Bengal assembly elections, apart from Assam and the union territory of Puducherry. In Kerala, meanwhile, the Congress-led UDF is set to regain power. The filmstar Vijay-led TVK has emerged as the front-runner in Tamil Na

Beyond LPG: Is PNG ready for India’s next cooking fuel transition?

India, the second-largest importer and consumer of LPG after China, faces growing pressure due to supply constraints. Most of India`s LPG imports transit through the Strait of Hormuz, a focal point of global turmoil. Given that LPG forms the backbone of household kitchens and the restaurant industry, any s

Maharashtra adopts hybrid model for Census 2026 data collection

The government has initiated preparations for Census 2026 in Maharashtra, introducing a hybrid approach that combines optional self-enumeration with comprehensive door-to-door data collection to ensure complete coverage across the state.   According to senior officials, the Self-

What the nine Indian Nobel winners have in common

A Touch Of Genius: The Wisdom of India’s Nobel Laureates Edited by Rudrangshu Mukherjee Aleph Books, Rs 1499, 848 pages  

Income Tax dept holds Ghatkopar Outreach on new IT Act

The Income Tax Department organised an outreach programme in Ghatkopar, Mumbai, to raise awareness about the key features of the Income Tax Act, 2025, effective April 1, 2026. The initiative is part of a nationwide effort to promote taxpayer awareness, simplify compliance, and strengthen a transparent, eff

Making AI work where governance is closest to people

India’s next governance leap may not solely come from digitisation. It will come from making public systems more intelligent, more adaptive, and more responsive to the dynamics at the grassroots. That opportunity is especially significant at the panchayat level, where governance is not an abstract po


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter