Planning Commission for upgrading telecom technology

Identifying major thrust areas for growth of telecom sector, Planning Commission has stressed on the need to upgrade and modernise telecommunication technology being used by the country's defence, police and para military forces.

In its annual report 2002-03, the Commission has said "a concrete action plan needs to be put in place to upgrade and modernise the technology (telecommunication) being used by defence, police and para military forces for ensuring efficiency and optimal utilisation of spectrum allotted and releasing the surplus spectrum for use by civilian purpose."

Stating that the telecommunications sector was witnessing major changes with network (equipped capacity) growing at an average rate of around 22 per cent annually, the Commission said the sector should be given infrastructure status for the next decade for achieving the targets of teledensity in line with the objectives laid out in the New Telecom Policy, 1999.

Towards the end of the Tenth Plan, over 65 million new telephone connections are envisaged to be provided for which major thrust areas and policy initiatives were vital.

Government's broad policy of taxes and regulation for the telecom sector have to be promotional in nature for optimum growth and should align licensing fee to the cost of regulation and administration of Universal Service Obligation, it said.

It further said spectrum pricing needs to be based on relative demand and supply over space and time in a dynamic manner and should promote introduction of spectrum efficient technology.

Planning Commission also said adequacy of funds has to be ensured for effective implementation of the Universal Service Obligation and, if needed, the rates of USO levy may have to be increased suitably.

The policy governing development of rural telecom services needs to be promotional in nature with a view to boost teledensity in these areas in line with the objectives of NTP, 1999, it said.

In addition to this, policy for spectrum allocation and licensing has to be redesigned so that this scarce resource is used optimally and does not become a constraint for growth, it added.