Trai issues consultation paper on telco gear mftg in India

Telecom regulator Trai released a consultation paper seeking views of stakeholders for promoting research and development (R&D) and manufacturing of telecom equipment in the country.

The consultation paper issued today aims at discussing, debating and finalising measures for promotion of R&D and creation of intellectual property as well as manufacture of telecom equipment and electronic components in India, TRAI said in a statement.

The growth in the telecommunications space has attracted a large demand for telecom equipment and subscriber terminals.

According to reports, the telecom equipment market is over Rs one lakh crore.

However, the domestic telecom equipment manufacturing segment has not been able to keep pace forcing the telecom operators to import most of the equipment required for their networks.

The existing domestic manufacturing of telecom equipment utilises technology developed abroad, resulting in the benefits of sales of such products accruing largely to foreign companies.

"To meet the country's demand as well as to be able to export, India has to create a synergetic telecom ecosystem and build globally competitive product companies across the telecom value chain," Trai said.

TRAI had issued a pre-consultation paper on the same subject in May this year for obtaining views of the industry.

Last date for submitting written comments and counter- comments is January 14 and January 21, 2011, respectively.