TIA seeks TEMA support to oppose Indian telecom procurement policy

Telecom Lead India: The Telecommunications Industry
Association (TIA) has sought support from Telecom Equipment Manufacturers
Association of India (TEMA) in opposing the preferential market policy
announced by the India government recently.
In February 2012, Indian government approved a proposal to give preference to
domestically manufactured electronic goods in its procurement program.
In a letter, TIA President Grant Seiffert has requested Ashok Aggarwal, director
general of TEMA, to oppose the preferential market access (PMA) rules.
“TEMA’s support for the PMA will hinder India’s
economic progress by reducing the availability of the best technology products
the world has to offer and, as a consequence of limiting competition, will
likely increase the price Indian consumers and companies will have to pay to
access Indian telecommunications networks,” Seiffert said.
Seiffert said the policies TIA has encouraged globally, and that have been
adopted in India – such as increased competition, technology neutrality,
de-regulation, and open trade for telecom equipment – have benefitted lower
income consumers who now have affordable access to the global telecommunications
Seiffert said the PMA will undermine the provision of affordable telecom
services in India and called on TEMA to join in opposing India’s preferential
market policy.
Despite all the progress in India’s mobile voice market, India has some of the
highest IP bandwidth costs in Asia.
“Why would TEMA want to restrict the ability of service providers to
choose the most cost effective and best available technology solutions to build
out the next generation of networks?” the letter said.
“We urge TEMA to reconsider its position and join the rest of the world in
opposing the PMA,” it said.
Recently, The Information Technology Industry Council (ITI), Telecommunications
Industry Association (TIA), U.S.-India Business Council (USIBC), and 32 other
associations from the United States, Europe, Japan, Canada, Australia, Hong
Kong, and Korea sent the letter to PM Singh.

The PMA rules culminate a series of similar Indian policy
proposals during the past year that have proposed discriminatory government
procurement policies as a means to stimulate domestic manufacturing of
electronics and telecommunications equipment at the expense of foreign companies.

The groups urge India to rescind the PMA and initiate a
consultation process with the private sector and other stakeholders to develop
policy approaches that will promote ICT sector growth without creating
market-distorting policies.

seeks level playing field for Indian telecom manufacturers

Recently, TEMA sought a level playing field for the home
grown telecom equipment manufactures.

The association has approached Prime Minister Manmohan Singh
to this effect. In a communication sent to the Prime Minister Office, TEMA
highlighted lack of implementation strategy on part of the UPA Government.

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