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TRAI proposes Rs.1-lakh cr infrastructure investment

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) on Wednesday issued important recommendations related to manufacturing, infrastructure and green telecom to promote structured growth of the sector. It has also proposed investments of over Rs.1-lakh crore for technical upgradation and improvement of manufacturing capabilities of the sector.

TRAI has recommended preferential market access to domestic manufacturers and tax concessions in equipment manufacturing policy. It has called for treating telecom infrastructure as an essential infrastructure. It has also asked for making green measures as an integral part of the proposed National Telecom Policy 2011 and ensuring energy certification for all telecom products, equipment and services in the telecom network.

The regulator said export of domestic products should be actively encouraged and telecom should be included in grant-in-aid programmes and bilateral trade agreements. It has also recommended setting up of Telecom Research and Development Corporation (TRDC) at an investment of Rs.15,000 crore, besides establishing a Telecom Research and Development Park with a fund of Rs.5,000 crore for carrying out on-site R&D. It has also recommended setting up of a Telecom Manufacturing Fund (TMF) with an initial amount of Rs.3,000 crore for providing venture capital to Indian product manufacturers in the form of equity and soft-loans.

It has also called for setting up of a Telecom Standards Organisation (TSO) for carrying out all works related to telecom standards, driving international standards and drawing up specifications of the equipment to be used in the Indian telecom networks, including security standards. Pointing out that Indian market for semiconductor chips is around $8 billion, TRAI has recommended setting up of two fabrication units with government assistance.

“The cost of implementation of the recommendations is estimated at about Rs.1-lakh crore over the next ten years. This is expected to give a return almost ten times the investment,” it added.

In its infrastructure policy, TRAI has recommended that telecom infrastructure provider companies should be extended tax benefits under Sec. 80 IA, while power distribution companies in the states should be given grid power connectivity on priority for telecom tower sites.

TRAI has also noted that there is a wider scope for Mobile Virtual Network Operators (MVNO) in the proposed unified licensing regime. Therefore, it has recommended that the scope of MVNO be broadened and strengthened. To increase usage of Internet, the telecom regulator has called for reducing its usage cost by taking various measures.

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