It all started when we realized that getting national telephone connections takes several years. The Government opened up the sector to private investment in 1994. Several companies came in and invested heavily. Then it was realized that due to the heavy cost of bidding, the operators were not able to invest and grow and now a large number of legal cases are pending in various courts. The Government realized clearly that the purpose of Government is not to earn revenue from the telecom sector, but to provide connectivity to all at the most affordable prices. Then came the historical decision, for the first time in National Telecom Policy (NTP) 99, to do away with the committed payments from operators and turn all of them into a revenue sharing business. At the same time all out cases were withdrawn and also the difference between Fixed Line and Wireless was removed and the concept of Universal Service known as UASL came in. The applications for licenses were made open, as and when the applicant desires, and licenses were to be given regularly. Licenses were also issued on various dates from 2001. During this time, the Government did earn revenue from this scheme, but by way of revenue sharing and not as single direct fees for spectrum. No auction was held.

The Government introduced new telecom operators in order to bring competition, the success of which has been seen by all in tariffs getting as low as one paisa for nine seconds, the cell phone available as low as Rs 700/- and in reach of every citizen on the road. Further, the STD concept has vanished due to a recent BSNL initiative to lower tariffs on mobile phones as well.

Now, everybody, including media consultants was shouting from the rooftop that the Government should have earned huge revenues. There were several figures making the rounds, from Rs 33,000 Crores to Rs 1, 76,000 Crores. Nobody is talking of the NTP 99. Nobody is talking of the need to reach the poorest citizen in the country. The Department of Telecom has issued notices for cancellation of licenses due to purported delay in roll out obligations. It is a matter of fact that there have been delays in roll out by all operators ever since the process of liberalization started. This is due to the normal delays in getting frequency, clearance for sites, land acquisition, numbering plans, delays in site acquisition, and right of way from State Governments. Nobody is concerned that investments have already been made and there are specific provisions in licenses relating to cancellations. We are again heading for litigation and turmoil and a bad name world over that will affect the FDI and investment.

It is a fact on the record that the spectrum has always been given free, as and when it is put to use, some revenue sharing is done at the rate of 2 to 6 percent. In the context of the sale of the 2G spectrum, 1600 odd Crores ruppes is the fee to secure the license, after which one is free to provide Fixed Line or wireless service or ISP. The Government, due to popular demand, reduced the revenue charges in order to make the service more affordable to all. So it is a great paradox that on one side the Government of India is asked to reduce the charges payable to government to make the service affordable to the lowest strata of the society and on the other side, hue and cry is made on the ground of revenue loss to the Government because spectrum was not sold to the highest bidder. How can you have your cake and eat it too?

If Government, parliamentarians, the media and people of India at large are concerned only about the revenues for the Government, then why not simply increase the revenue sharing of the government to perhaps be as high as 50--70 percent. The government of India can then earn billions of rupees . Who cares if service is available to the poor or not? Why care for service to the poor whenthe sole aim should be to earn profit? And why should there not be 100 percent FDI allowed to operators? The Government of India could earn billions of dollars by awarding licenses to foreign companies.

Today, we have lost sight of the bigger vision of Telecom Policy. This is not good for the telecom sector especially for investment and growth.

When people talk of the 2G auction, they fail to bring out the fact that nowhere in the world had 2G auctions been held to date. 3G was auctioned everywhere in the world and nowhere questioned their Government as to why 2G was not auctioned. India is unique in its diversity and democracy, as also in controversial hypes, when it comes to the telecom sector.

Down the line, hardly anybody is concerned for the poor customer. We have lost sight of the essential services like railways, hospitals, infrastructure, defense, security where revenue is not the consideration. And NTP 99 provided telecom in the same line. Of course the people of India have the right to change the policy now and bring in all these essential services to be revenue earning machines.

Perhaps the only way out is that government and the people of India make a conscious decision about what they want: growth and connection for ordinary citizens or revenue to the government, and then policy can be made accordingly. Also, nobody is sure if we want indigenous Research and Development and manufacturing in the sector. If yes, let us reflect on what we have done and what is needed. Until then, let us welcome turmoil in the telecom sector once again.