Inconsistency Mars Indian Offer
Indias offer on basic telecom services to the World Trade Organisation is still peppered with inconsistencies, even as the WTO pact came into effect yesterday. The countrys offer ranked among the poorest filed by 73 countries, many of whom turned in improved offers. The country has not committed itself to deregulating its domestic and international long-distance services sector and has also bound itself only on a review of government monopoly in the two services. It keeps pace with Brunei and Indonesia which have promised reviews in 2010 and 2006 respectively. Hong Kong has made no commitment whatsoever, but the Cable&Wireless-led Hongkong Telecoms monopoly is expected to be lifted before 2000.
Further, although the country allows 49 per cent foreign equity participation in service companies - and more through a holding company - it has bound itself to only 25 per cent. There are other countries like Thailand (20 per cent) that have bound themselves into low levels of foreign equity, but that is consistent with domestic policy.
India has also not accepted the WTO reference paper, although experts admit that it is not of significant consequence. It took an MFN -exemption against the schedule on telecom accounting rates, which the government feels is unfair to Third World economies. (The rates are the charges that telecom carriers levy on one another to terminate a call in their home networks.)
The DoT, alongwith several other countries, is in negotiations with the International Telecommunication Union to find a solution to the impasse created by a directive of the US telecom and electronic media regulator, the Federal Communications Commission, that TARs have to be slashed drastically. Since February 15, 1997, a band of 69 countries joined the pact by accepting 55 schedules _ covering voice telephony to data, to satellite services _ has expanded to 72, with Pakistan and Switzerland having improved their commitments.
Last year, government officials here said that the countrys offer would be improved as trade negotiations under the WTO proceeded, suggesting a barter for concessions in areas like financial services.