Dot Restructuring Put On Hold

Confirming this, top DoT sources told Business Standard that there was no such (restructuring) proposal before the (present) government. However, the Telecom Regu-latory Authority will be set up as scheduled.

The proposal, moved under former communications secretary R K Takkar, envisaged a three-way split of the present DoT. The reorganisation was to have been function-based and would have split DoT into a) an operating entity, b) a policy-making arm and c) a regulator. The recast plan mooted to gear up DoT for competition from private entrants in basic services was to be discussed by the Congress cabinet in March but put off once the general elections were announced. Top DoT officials had then expected the new structure to be approved by June/July this year.

 

The operating part of DoT would be called India Telecom, including the activities of MTNL in Delhi and Mumbai. While legally it would remain a department under the telecom ministry, its inception was seen as the first step towards corporatisation of the DoT monolith. It is this `corporatisation intent that seems to put minister Verma off the idea.

India Telecom was to be delegated all powers that do not require approval from the Parliament. The basic reference point of the restructuring exercise was that a ministerial form of organisation was not ideal for an operator.

The policy-making arm was to exist as an advisory body to the communications minister. It would broadly decide government policies in the telecom sector. It was to report directly to the minister of communications, sources said.

The policy entity was to handle industry-level and operational decisions. For instance, it would decide on the entry of new operators and opening up of the long-distance and international call market. All decisions common to more than one operator were to be handled by the policy making arm.

Finally, the powers of a regulator were to be vested with TRAI. The TRAI will handle decisions on tariff fixation, revenue sharing, interconnectivity between operators, allocation of frequencies and settling disputes between operators and customers.