No question of a monopoly in telecom sector: Manoj Sinha, Telecom Minister

The government is confident that no more mobile phone service companies will be lost to competition and dispelled concerns over rise of a monopolistic structure in the industry. Telecom minister Manoj Sinha told ET in an interview that he expects revenue recovery and profitability to return soon and licence fees and spectrum usage charges to be rationalised.


Will rationalisation of levies mean phasing out or reducing of some levies?
All the levies in the telecom sector need an overall review and rationalisation of the spectrum usage charge, licence fees, including universal services obligation fund (USOF), are on the cards. We certainly don’t view telecom sector as a revenue generator but as an overall facilitator for the country’s growth and the levies, including the USOF, need to be reviewed in that light. AGR (adjusted gross revenue) needs to be rationally defined, we need to keep the sector strong.

Is there still a need for USOF at all, now that rural penetration has been mostly achieved?
USOF is still needed. In place of using it to spread telecom services, we now need the funds to make broadband pervasive across the length and the breadth of the country. In fact, we feel we will need a lot more funds than envisaged. Northeast alone required Rs 10,000 crore. Andaman Nicobar will need another Rs 3,000 crore.

Will reduction in levies hurt the government’s revenue from the sector?
One benefit of rationalisation is that the cost decreases and it gives an impetus to the sector, attracts investment and generates employment. So, in effect, we will look at rationalisation as a means to boost the sector and hopefully it will boost sectoral revenue.

How many telecom players are ideal for the sector?
Consolidation in the telecom sector is a worldwide phenomenon. Developed countries typically have between two to three players. We also have about four players now, including the staterun telecom operator.

Will the government intervene in case the number of private operators reduces further, in order to avoid any monopolistic developments?
Once you have opened the sector to private operators, automatically, the government’s role is reduced to a minimum. If we intervene in the market forces, we will be criticised. On our part, if people want to take any progressive step, we will try our level best to act as facilitators. But let me assure you, there is no question of any monopolistic situation arising in the telecom sector. We don’t think the number of operators will reduce further. On the contrary, our primary concern is that the market, which has gone into the red, needs to stabilise. The revenue which is seeing a downward trend needs to revive and businesses need to become profitable. We want this to happen as soon as possible.

Will the next spectrum auction be held this fiscal? Do you expect demand for spectrum, given pricing and the financial stress still in the industry?
We will take an appropriate decision at an appropriate time. We have got recommendations and a committee is mulling over the issue. Having said that, we also need to take into account the market conditions, the needs of the sector and the readiness of the players into account. But spectrum is a much-needed resource to improve service quality.

Is the government ready to roll out other bands for 5G, besides the 3300-3600 MHz band?5G standards are yet to be decided by ITU (the United Nations agency for information and communication technologies). Arogyaswami Paulraj committee’s recommendations have highlighted which bands are fit for 5G and DoT’s committee will take a decision, keeping all aspects in mind. Although we have not reached a stage where 5G is the immediate need of the hour, we are not laggards in the work that is being done on 5G. We are not in those times when we started our 3G and 4G years later than others.

What has the telecom ministry’s role been in data protection?
We are working with IT ministry closely as data protection is a big focus of new telecom policy. Inputs are being taken from all areas.

Have you had discussions with the likes of Facebook and WhatsApp on their response to misuse of their platform? What has their response been?
They have realised they cannot work without our help. The government’s stance has forced them to come and talk to us. They need to work out possible solutions that they have to offer.

How will BSNL survive competition?
BSNL has clocked an operating profit for FY18 but the profits have reduced because of competitive pressures. The mobile segment may have been impacted, but BSNL has other opportunities and internet telephony is one of them. We have told BSNL that there may not be money in the mobile segment but stay in it and continue to serve people. There are positive signals like BSNL’s market share has increased, while others have seen a dip in their market share. In fibre-to-home, Bhartnet’s network will be used across villages and internet telephony will revive BSNL.

By when will BSNL be profitable at the net level?
We have not fixed targets but BSNL is a good player in the mobile market and we are seriously contemplating that 4G spectrum should be given to it.