Telcos cannot sacrifice voice for lucrative data services: Ravi Shankar Prasad

Interview with Union minister for communications & IT

The government has taken the policy initiatives required for telecom growth and it is now the operators' responsibility, Ravi Shankar Prasad, the Union minister of communications and information technology, tells Mansi Taneja. Edited excerpts:

Telecom operators have gone to court on the compensation policy for call drops as prescribed by the regulatory authority.

I wouldn't like to comment on a court-related matter but from our side, we have taken all policy decisions - spectrum trading and sharing, allowing operators to install towers on government buildings and even post offices. It is now their job to set things right. Operators need to recognise that good quality of services is integral to their credibility. They have to reinforce and reconfigure their networks by investing more in infrastructure. Besides, they can't sacrifice voice for lucrative data services.

Will the ministry be able to conduct another round of spectrum auction this financial year?

We are waiting for the Telecom Regulatory Authority of India's recommendations. Once that comes, we will do our best.

What's the status of BharatNet? Are we on target to meet the 2017 deadline?

We have connected Kerala, Chandigarh and Puducherry fully under this project. Eighteen state governments have agreed to a SPV (special purpose vehicle) model. We will try our best to meet the target date for connecting 250,000 gram panchayats. Last June, when the new government came into power, the fiber-optic pipe and cable laid were 2,292 km and 358 km, respectively. As on December 13, these were respectively 106,721 km and 78,132 km.

We're laying 1,507 km of fiber optic weekly and 1,713 km of cable. About 81,000 gram panchayats have been connected, of the targeted 100,000 by the end of this financial year. A tender has been finalised for another 81,774 panchayats.

Any plans to involve private parties in the last phase of BharatNet?

The SPV model is a better one, compared to involving private parties, though we might look at the latter for marketing. The department is in the process of finalising the marketing strategy.

Is your ministry keen on merging Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL)?

We have asked their boards of directors to work out synergies between the two. For public service, good delivery and fair competition, there has to be a vibrant public sector unit. We have to make these financially sound before thinking of any merger. BSNL is showing signs of revival. It has posted an operating profit for the first time in many years. By 2017, it should be back in profits. MTNL will also turn around.

E-commerce has come as a boon for the postal department. How is the department preparing for its new venture, a payments bank?

From e-commerce, the business has reached Rs 970 crore till date. Amazon says 60-65 per cent of its orders are coming from small towns and areas. Parcel revenues - mainly coming from the e-commerce sector - declined two per cent in 2013-14, recorded growth of 37 per cent in 2014-15 and till October this year, a growth of 117 per cent.

For the payments bank, the postal department has received expressions interest from about 25 banks and financial institutions, even global ones such as Barclays and the World Bank. They're keen to partner the department because of the reach of post offices across the country. We're looking to convert 125,000 rural post offices into common service centres, apart from increasing the total number of these to 200,000 from the current 144,000.