Telecom regulator Trai on Monday started second phase of consultation process to promote use of locally manufactured equipment in the domestic network.
The Telecom Regulatory Authority of India had floated a consultation paper on the subject in December 2010 and issued recommendations on the same in April 2011.
“In the last five years, there has been an exponential growth in technology in the telecom sector. A need has therefore been felt to revisit the issues of Promoting Local Manufacturing in Telecom Sector. In light of the above, the authority has suo motu decided to issue a consultation paper on Promoting Local Telecom Equipment Manufacturing,” Trai said in a statement.
The consultation paper will also discuss the controversial issue of standard essential patents and grant of their licence for use on the basis of fair, reasonable and on-discriminatory (FRAND) terms. It has been a bone of contention between domestic mobile phone companies and European multi-nationals.
The regulator said it aims to realistically assess Indias true potential in equipment manufacturing with the aim to frame recommendations to transition Indian telecom industry from an import-dependent industry to a global hub for manufacturing.
Trai added that the mobile handset manufacturing industry showed good progress in the past five years, but telecom equipment manufacturing companies have not been able to catch up.
“Today, the services sector commands nearly 60 per cent of Indias gross domestic product (GDP) whereas the share of manufacturing, a major contributor to the infrastructure domain, has been stagnating at around 16 per cent on average since 1990,” the regulator said.
By Baishakhi Dutta
