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Haath haath mein telephone Gaon gaon mein Internet
Transformation of Telecoms in India
ByDr T.H.Chowdary
* Director, Center for Telecom Management & Studies* Chairman, Pragna Bharati (Intellect India), AP
* Former Information Technology Adviser, Government of A.PChairman & Managing Director
Videsh Sanchar Nigam Ltd., BombayT: +91 (40) 2784-6137/6667-1191(O)
F: +91 (40) 6667-1111 (O) Talk @ TANA Conference, USA: 2 &3 July '09
Julyl'09 2THC_CTMS
Spectacular Growth Since NTP-1994
1947 1994 2009
Telephones 80k
PT s 420 >4m
Waiters 2x the Haves no waiting
Waiting time 3 to 5 years on demand
* Highest Growth Rate in the world
400 mln
upto 10Y* Highest Annual Growth 120 mpa* World's 2nd largest system
Julyl'09 3THC_CTMS
Wait & Wait.....
Telephonic address: “WAIT LIST” Apply for the grandson Consult: Sooth sayer when the Trunk Call
comes Post - It can't be slower ; Don't “telegram”
Julyl'09 4THC_CTMS
Waiting Hataao!Becomes: Waiters Hatao
(like garibi/garibinko hatao!) Renew by priced /prescribed forms (Rs. 10/-) 50% disappeared Re-renew by putting a deposit of Rs.1000/- 50% disappeared Own Your Telephone (OYT) First Rs. 3000;
revised to Rs.8000/-) 25% disappeared Tatkal Rs.40,000 deposit
Julyl'09 5THC_CTMS
Wrong Numbers 1/2
Dead Telephones Dead phones & Burglary in Mumbai
“That is why I say, the burglar must be from out of town. He cut the telephone thinking it works”
Inflated Bills “Pay First: Complain later - “Fiat car for sale to pay telephone bills”
“Look! IT may be raining outside...
“No sir! There are only clouds!” “If it is wrong number why are you answering?”
Julyl'09 6THC_CTMS
Wrong Numbers 2/2
Unsure in any Need. (Unsafe At Any Speed: Ralph Nader about US Cars)
“Lots of phones on the table.This for incoming callsThat one for outgoingThis for wrong numberThat farther one for cross talkThat beyond for musicAnd that last one – dead for 3 months Cables dead; Tent over a trench,for months
“men@work” In order to not inconvenience people frequently, we have
decided to leave it like that permanently”
Julyl'09 7THC_CTMS
Rajya Sabha Question
M.P: What steps are government taking to save people from wrong numbers, cross connections, dead phones, inflated bills, delayed trunk calls, call drops, very old telephone directories?
Minister: C.M.Stephen “There is no compulsion to have a
telephone. One is at full liberty to surrender”
Julyl'09 8THC_CTMS
Monopoly's ills 1/2
Unbridled because it was by a government department
Socialism meant “telephone is for rich man, so fewer the better; the worse it works, less the profiteering so, little investment & bad maintenance
Raise prices to generate capital funds 50% of billed amount not for service Plan to generate jobs, not for work
Julyl'09 9THC_CTMS
Monopoly's ills 2/2
One employee for 12 telephones in the 1980s in DOT
(Now 1 for about 300 in BSNL; 1 for 3000 in P-Telcos)
No new services like mobile phones, e-mail, FAX; radio-paging, Internet, Video conferencing - all these are for the rich;
inadmissible in Nehruvian Socialism
Julyl'09 10THC_CTMS
PCI
AX TSP
Time
(a) Affordability
A PCI/ Tele-Service Price- PCI: Per Capita Income- TSP: Telephone Service Price- A: Affordability
Bring down price to increase affordability
Julyl'09 11THC_CTMS
Cost of an year's telephone service vs: PC GDP
• Affordability increasing rapidly.
• The annual cost for a basket of services was 2.5 times PCI in 1951; equal to PCI in 1994 and now 0.10 in 2009!
• So “Haath mein telephone:
Carpenters, Vegetable Vendors, Milkmen, Mason, Plumber, Driver, Mazdoor, Electrician, Beggars ( in Tirumala, Shirdi..)
Julyl'09 12THC_CTMS
Telecom Demonopolisation (1/2)
1984-'89: Rajiv Gandhi ended State monopoly on equipment production & launched C-DOT
1991: P V Narasimha Rao began ending State monopoly on services.
(socialism=state capitalism) 1994: National Telecom Policy ended case by
(suit) case licenses 1997: Statutory Telecom Regulator, TRAI May-Aug 1998: BJP-led NDA's IT &SW; Internet
policies
Julyl'09 13THC_CTMS
Telecom Demonopolisation (2/2)
NTP 1999 Regulatory reform TRAI, TDSAT NTP '99 saved dying P-Telcos by migrating
them to revenue share & not upfront crippling licence fee payment unrelated to network & revenues
Level-playing field by corporatising DOT's services into BSNL in Y 2000 and end to STD/ISD monopoly.
Private capital, Indian & foreign (upto 74%)
Julyl'09 14THC_CTMS
Beneficences
Printing Roadways;Railways; Electricity; Automobile;
Telegraph; Radio/TV; Computer Machines extended man's physical power ICTs & telephones are extending
mind/knowledge power Machines for work Men to think, divine & design Numbers replace names Convergence/ multi functional cell phone Telecoms become electronic-photonic
infrastructure for storage and transport and exchange of electronified information.
Julyl'09 15THC_CTMS
Numbers exceed names! (population)
Nordic countries, Italy, UK,France Japan, Korea Delhi, Mumbai.... Some persons have cellphones from different
companies Delhi, Mumbai, Bangaluru... are exceeding
100% teledensity.
Julyl'09 16THC_CTMS
Investments Poured in (1/2)
P-Telcos put in Rs. 1,25,000 cr BSNL/MTNL share reduced to 28% Annual investment in the Sector > Rs. 40,000 cr/P.A Annual revenues Rs. 1,40,000 cr More than Rlys & Electricity Less than only the oil & Gas Sector Over 40 P-Telcos in fierce competition. Many more P-telcos got 2G licenses WiMaX & 3G licenses yet to be given
Julyl'09 17THC_CTMS
Investments Poured in (2/2)
Telecoms transformed into globally connected electronic-photonic highways system for information enabling Bharat as IT, SW & ITES supplier to the world
Telecoms is the most lucrative portfolio for Ministers Very scandalous licencing & PSU purchases. DOT coveted by Regional , “Secular” parties ( Rlys,
Highways, Seaports, Mines, Fertilisers too. 55 persons held the portfolio since Independence ( i/c
P.M, Vajpayee) Those remembered for distinction are: Rafi Ahmed Kidwai, Jagjiwan Ram, C.M.Stephen, Sukh
Ram, Mahajan. Arun Shourie
Julyl'09 18THC_CTMS
Unintended Consequence
• Telecom Equipment Production nearly dead
• R&D neglected
• India imports “know-how” not only from Europe/Korea/Japan but also China
Julyl'09 19THC_CTMS
Mis-use/ Misbehaviour
Cell phone talk in public places- roads,waiting rooms; in lifts; buses; trains; in queues; walking & talking
Addition of fiddling, profase SMS-ing Vulgar ring sounds, ring backs So smell, tantalisingly Thievable Annoyance & public nuisance increasing
Julyl'09 20THC_CTMS
What are the services not provided No Telephone (Directory) Services
BSNL's by BSNL from BSNL numbers only. No P-Telco publishes whom to approach for
help / complaint / grievance Executive's Name Tel No / Mobile No / e-mail
BSNL Directories used to publish this information i/c hierarchy
P-Telcos don't hold Telephone Adalats ( i.e like BSNL does)
Julyl'09 21THC_CTMS
What is yet to be realised
Internet to every village Internet to every Educational Institution & class
room Broad-band to every town/village Total territorial coverage Intellectual property creation (R&D); Manufacturing (China,Korea recently; Japan
earlier)
Julyl'09 22THC_CTMS
Dhanyawad:
Thank You