National Telecom Policy 2012 to ensure strong roadmap for spectrum: Hemant Joshi

Telecom Lead Asia: Hemant Joshi, partner, Deloitte Haskins
& Sells, said NTP 2012 projects a bold vision for telecom sector with
emphasis on spectrum management, broadband on demand, domestic manufacturing,
rural coverage and infrastructure status, which would spur growth of the
telecom sector and in turn Indian economy as telecom can play role of catalyst
in the GDP growth. As per World Bank estimate, 10 percent increase in telecom
penetration results in 0.81 percent growth in GDP in developing country.

 

If the policy is properly implemented it would not only
benefit telecom operators and consumers but would also benefit telecom
manufacturing sector as telecom equipment manufacturing has been given special
importance in the policy.

 

The approval has come at the right time as country’s GDP
growth rate is falling (it is at 9 year low).

 

Liberalization of spectrum

As per NTP 2012, the government is going to make roadmap for
availability of spectrum every 5 years. This would result in appropriate
allocation of spectrum and also help operators design there network  /
technology adoption keeping in view the availability of spectrum. NTP also
envisage license and technology neutral spectrum allocation which is step in
right direction considering evolving efficient technologies.

As per TRAI report, there is likely to be shortage of
spectrum due to increase in usage of data  / voice related telecom
services and this new policy along with other initiative  of the
government (like vacation  of spectrum used by other industries  /
govt bodies) if implemented effectively would result in availability of the
spectrum required.

Roaming charges abolished under NTP

This would be negative in short term for operators as they
would lose roaming revenue. However in the long run as usage would increase
with no roaming charges might offset the revenue loss caused to the operators.

One India one license:

Same is likely to be beneficial to pan India operators as
they would be required to maintain one set of book and also number of
compliances would reduce significantly.

Number portability:

This is going to be boon for consumers as they would be able
to retain the number even though they migrate from one telecom circle to other.

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