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

How Rafi, Raj Kapoor helped pave the way for a great uranium deal

There`s a certain moment in diplomacy that`s too personal to be captured in a communiqué, too small to make the front page, but more revealing than the front page. This week, prime minister Narendra Modi reached Tashkent and, amid the pomp of state visits, managed to evoke the old Bollywood tunes

Distinguishing Fish 1 and Fish 2: The pragmatism behind India’s WTO ratification

 India became the 123rd WTO member to ratify the multilateral Agreement on Fisheries subsidies (AoFS) when it deposited the Instrument of Acceptance for Phase 1 on July 20, 2026. The ratification is restricted to disciplining Illegal, Unreported and Unregulated fishing (IUU), protection for overfished

The 7% growth problem: Why the next 7% will be harder

India has become accustomed to hearing the 7% growth number. It is now less a milestone than an expectation. Yet the paradox is becoming clearer: maintaining 7% growth may be considerably harder than achieving it once. India’s real GDP grew 7.7% in FY2025–26, following growth of 6.5% in FY202

The Constitution cannot be altered: Justice Abhay Oka

Justice Abhay Oka, who retired from the Supreme Court in May 2025, has said that the Constitution of India cannot be altered. Explaining the landmark Kesavananda Bharati judgment (1973) on the basic structure of the Constitution, he said, “This is one judgment that has saved democracy in India.&rdq

How the flora and fauna evolved in the Indian subcontinent

Mammals of India  By A.J.T. Johnsingh and P.O. Nameer HarperCollins India in association with Bombay Natural History Society  

India`s renewable race is moving beyond megawatts

When Shell bought Sprng Energy in 2022, India`s renewable energy market appeared to offer precisely what global energy majors were seeking: scale, growth and a place in one of the world`s largest energy transitions. Four years later, Shell is selling the same business to Aditya Birla Group for an enterpris

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter