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Centre, Trai weigh big role in telecom manufacturing

The government and the telecom regulator are weighing steps to make India a telecom manufacturing powerhouse.

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Centre, Trai weigh big role in telecom manufacturing
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The government and the telecom regulator are weighing steps to make India a telecom manufacturing powerhouse.

“If certain measures require regulations to be issued, the same would be carried out,” the Telecom Regulatory Authority of India (Trai) said in a consultation paper on Tuesday.

The paper has pointed out that even as the telecom sector would continue to contribute significantly to the Indian economy over the next few years, the equipment manufacturing industry has had a modest role to play so far.

“There is all-round recognition that pro-active steps must be taken to repair the situation,” the Trai paper has said. The consultation paper has sought stakeholders’ comments on the issue by January 14.

According to the Department of Telecom estimates, telecom equipment worth more than Rs3,50,000 crore will be required by 2015.

“What benefit of this would accrue to the domestic companies and the country would depend on how the telecom value chain is handled and what efforts are made towards making India a credible
manufacturing powerhouse,” the paper added.

Trai has observed that there are more than 25 players of which majority are international players like Nokia, Huwai, ZTE, Cisco etc.

For a strong manufacturing segment, R&D and innovation are important pre-requisites, the regulator has said.

“There are hardly any world-class telecom products which have been developed in India. There is a need to enhance R&D in the telecom equipment manufacturing segment and significantly increase the number of Indian telecom product companies in the country.”

The Trai paper has asked long-term questions like what should be the objective and focus of the R&D effort for the year 2020 and for 2015.

The other questions posed by the paper include what should be the level of ‘Indian products’ that we should attempt to achieve at the end of 2015 and 2020.

The consultation paper also talks about the broad level of investment required for this effort, linkages between Indian and overseas institutions, and fiscal incentives that could be offered by the
government.

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