All auctions of spectrum will be done in a timely, fair and transparent way through good governance: Ravi Shankar Prasad

Mr. Ravi Shankar Prasad, Union Minister for Communications & IT, today assured industry that the auction of spectrum in the future too would be conducted in a timely, fair and transparent way. The hallmark will be good governance and the road map will be fully disclosed in advance to that industry can put its act together in a planned manner, he said.

Inaugurating 'Digital Bharat 2015', the first edition of FICCI's 'Digital Bharat', a platform for having transformative exchanges and deliberations, organized jointly with the Department of Telecommunications, Ministry of Communications & IT, Government of India, Mr. Prasad said the 'Digital India' programme was party-neutral, ideology-neutral and Centre-State-neutral. It aims at bridging the urban-rural divide and was committed to ensure digital inclusion. I would like to see every mason and carpenter in the country using his smart phone to enhance his business and income, he added.

The last spectrum auction, the biggest so far, that ended in March this year fetched about Rs 1.10 lakh crore to the government.

Mr. Rakesh Garg, Secretary, Department of Telecommunications, Ministry of Communications & IT, stated that the three ambitious and visionary programmes - Make in India, Digital India and Smart Cities - have opened up huge opportunities for industry. The economy, he said, would stand to benefit immensely through higher productivity that the vast number of talented Indians will usher in.

He said the government was committed to doing everything possible to make the environment conducive for industry and the consumer, the success of which will depend upon industry and government working together.

Mr. Anant Goenka, Whole-time Director & Head, New Media, The Indian Express Ltd., pointed out that the importance of digital technology could be gleaned from the success stories of the young multi-billionaires who have used digital platforms innovatively. The question that remains, he said, was how do we get to 'Digital Bharat' in a fair and sustainable way.

Mr. Joseph Alhadeff, Chairman, USIBC Digital Economy Industry Group, spoke of the need to achieve global standards in manufacturing and integration into the global supply chains. He also called for more enhanced cooperation amongst the stakeholders so that there was no duplication of effort.

Dr Jyotsna Suri, President, FICCI, in her welcome address, stated that it was encouraging that the Indian government is prioritizing technology as an enabler for the transformation and development of the country. However, to reach the desired goals, it is extremely important to develop an environment which nurtures Government-Industry dialogue and partnerships, she emphasized and added that We need to understand the nature of the opportunities being offered by the government programs like Digital India and Make in India and therefore FICCI has initiated the digital bharat series as a platform for having transformative exchanges and deliberations, she said.

Mr. Virat Bhatia, Chairman Communications and Digital Economy Committee, FICCI, who moderated the inaugural session and delivered a vote of thanks, stated, The digital revolution now stands at the cusp of a transformation, with the government having laid out its vision of a digitally enabled India over the last one year. The success of both Digital India and Make in India, will ride on the back of strong telecom ecosystem, digital infrastructure and industry's link in the value chain. Some important issues on policy and regulatory front will need continued attention.

Mr. Prashant Singhal, Global Telecommunications Leader, EY, presented the highlights and recommendations of the FICCI-EY report.

The following are the key takeaways of the report:

Recommends to bring handsets under provisions of Goods of Special Importance under the Central Excise Tax Act, 1956; thus, capping the maximum VAT levied by states at 5%

Endorses a ten-year tax holiday on a block of 15 years on all profits and gains for manufacturing in the mobile phone industry

Endorses to incorporate the DoT guidelines on installation of mobile tower in the statutory framework and rules in line with the 53rd parliamentary committee report

Recommends to have minimum interest subsidy of 5% on all fixed capital investments for entire Electronic System Design and Manufacturing sector in the lines of benefits given under Technology Upgradation Fund Scheme

EY-FICCI report recommends to eliminate or reduce Universal Service Obligation Fund (USOF) to 1%-3%

Commenting on these findings, Singhal said, A favorable and stable regulatory environment, coupled with increased transparency, is critical for attracting investments to the sector. An empathetic perspective of challenges faced by service providers is also important for restoring its vitality. Our report highlights that the country will speed ahead on the Digital Highway only with the provision of a clear spectrum roadmap, reducing USOF levy, rationalizing taxes and providing a policy push to boost manufacturing ecosystem. The resultant benefits transcend sectors. Moreover, telecom should be considered a critical infrastructure sector and its financing needs should be addressed accordingly.

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