Policy paralysis lingering on in DoT, says former Trai chief

In a strong criticism, former chairman of telecom regulator Trai, Rahul Khullar, today said policy paralysis is lingering on and alleged that DoT is working at the behest of Finance Ministry.
"The problem is Sanchar Bhawan (which houses telecom department) wakes up when North Block wakes up. When Finance Ministry needs money, then DoT wakes up and it comes to the regulator and asks Mr Regulator please fix a price," Khullar said while speaking at the Brookings India event here.
Khullar retired as Trai chairman in May 2015.
"The DoT and Sanchar Bhawan has been through hell and that in 2008, and then there is natural reluctance to take decision and that reluctance has lingered down and still exists. In seven years, it is too longer time in sector which is changing dramatically if you stop making decisions, it is not sustainable," he said.

Khullar said that the term policy paralysis was coined at the time of UPA government "that haunted the previous government to its demise".
During the previous UPA government's tenure, leading industrialists such as IT czar Narayana Murthy and Wipro Chairman Azim Premji had alleged that there was policy paralysis in the country in wake of scams in sectors like telecom and coal.

Khullar questioned the delay in various sector-related issues, specially spectrum trading and sharing policy, on which the regulator gave its recommendations in September 2013.
"Every day we hear that spectrum trading and sharing is going to happen. If we are in serious crisis of spectrum why are we not pushing it fast? Why is it taken two years?" he asked.

Trai has recommended sharing of all categories of airwaves held by operators, including spectrum allocated at old price of Rs 1,658 crore or assigned without auction. The regulator also recommended allowing trading of spectrum.
"For any observer it would appear that policy paralysis still rules in Sanchar Bhawan because if all that I have said before is not been done, what do I say? Draw your own conclusion whether it is policy paralysis or indecision," Khullar said.
He said that the government collects USO Fund to invest in telecom infratstructure but alleged that the fund is being used to finance budget. "We need to ask question what is the purpose of USO Fund?" he asked.

Khullar also criticised the DoT's logic of equating availability of spectrum with unsold airwaves in March 2015 auctions.
About 11 per cent of spectrum that was put on auction in March this year remained unsold. Of 470.75 MHz of spectrum put on auction, 418.05 MHz frequencies were sold.
Government sold spectrum in March at about 68 per cent premium, at Rs 1,09,874.91 crore. At the base price fixed by the government, its value was Rs 65,463.40 crore.
The former regulator also said that government need to change existing policies to make spectrum usage more efficient.