Maran against telecom network sharing

Information Technology and Telecommunications Minister Dayanidhi Maran has opposed the recommendations of both the Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (Trai) on the controversial issue of telecom infrastructure sharing and unbundling of the local loop.

While both the DoT and Trai have recommended this move to 'minimise wasteful duplication of resources', Maran has categorically ruled out the possibility of the government permitting the sharing of BSNL and MTNL networks.

In the draft new telecom policy, the DoT has said "sharing of infrastructure and collocation reduces costs for a new entrant, and simultaneously provides additional revenues to incumbents, thereby resulting in a win-win situation with the added benefits of reduced environmental impact and public inconvenience".

Infrastructure sharing will also facilitate increase in tele-density, accelerate rollout in rural areas and help customers avail services in areas not served by their operators, the DoT said.

Asked on the recommendations in the draft, Maran said, "We have to put an end to this debate on infrastructure sharing and unbundling of the local loop.The government does not favour the move. Telecom PSUs have large copper connectivity, but are not sitting idle on it. Private players will also have to set up their own network and we are willing to assist them in this."

The DoT added that "the regulator has recommended infrastructure sharing in the national interest" and to ensure that service operators are not forced to create networks where there is surplus or in places where it is not economically viable".

Further, the DoT has even proposed that in order to promote competition in the fixed lines, dominated by PSUs, the last mile be unbundled and all service providers be allowed to sue this infrastructure to offer voice, data and broadband services to customers directly.

Concerned about the country's failure to meet its broadband targets, the regulator, too, had recently asked the government to reconsider its earlier recommendations on unbundling of the local loop.

Defending the performance of BSNL and MTNL in the broadband segment, Maran said the PSUs had added a total of over 350,000 new users since the launch of these service in January, 2005, and were also instrumental in providing these services for rentals as low as Rs 199 a month.