\"<p>K.
K. Rajaraman<\/span><\/figcaption><\/figure>NEW DELHI: The government believes the telecom reforms announced mid-September have started to show early results, says Department of Telecommunications<\/a> (DoT) secretary K Rajaraman. <\/strong>Speaking to ET’s Anandita Singh Mankotia & Muntazir Abbas, Rajaraman says the government will price 5G<\/a> to make the services affordable as the telecom sector is viewed as an engine to drive growth and not for maximising revenue. The second generation of reforms, he says, will further reduce the compliance burden on operators and should be released in the next months. Edited excerpts:

<\/em><\/em><\/em>Your take on the overall state of the industry?<\/strong>
Worst is behind the industry with three private players and
BSNL<\/a>. The reforms have shown fairly good early results, so we expect this process of reforms to further help the industry strengthen itself and provide more affordable and high-quality services.

Did the September 2021 reforms play a role in facilitating Google’s investment into
Bharti Airtel<\/a>?<\/strong>
I do think so because the idea of the macroeconomic reforms has been to support investment and reduce cost of doing business. So, from that perspective, any foreign investor would look at India very positively.

What will be the focus of the next set of telecom reforms?<\/strong>
We are looking at deepening the process of ease of doing business, essentially compliance. Last year, 87 compliances were done away with. A number of other licences, both wireless as well as wireline, need to be further simplified. In addition to that, there are new areas where improvements would happen, such as satellite communications and M2M communications.

Can we expect a reduction in licence fee and taxes in the second wave of reforms?<\/strong>
These things will require examination. The second generation of reforms will come in the next few months.

Will DoT be withdrawing its appeal in the Supreme Court in the one-time spectrum charge case? What is DoT’s stance in the points of interconnection case?
<\/strong>On legal matters, I won't be able to say anything.

Does
Vodafone Idea<\/a>’s computation of government equity potentially at 35.8% tally with DoT’s calculation?
<\/strong>This aspect is currently being dealt with by the Ministry of Finance. This is the first of its kind of calculation and we should have clarity in the next one and a half months.

Has
Vodafone Idea<\/a> updated the government about its fundraising?
<\/strong>They are in the process of raising funds is what they have told us. It is not correct for me to answer any further; you will have to ask them.

With the government having a 35.8% stake in Vodafone Idea now, has the department readied the exit strategy?
<\/strong>Essentially, the finance ministry is working out the terms and conditions, and the manner in which I think this a step will be taken. But there are a number of options including legal issues involved. The finance ministry is examining, and I am sure that the ministry will come out with a suitable exit plan because essentially, it is the finance ministry, especially the Department of Investment and Public Asset Management (DIPAM), who's the asset manager of the government which takes a call on all these matters. So, we will definitely reach out to them to come up with a coherent exit plan, also as part of the overall industry.

But when is this exit plan likely to conclude?<\/strong>
Maybe in a month or so, because this is the first time it is being done.

Telecom equipment makers have sought extension in the
PLI scheme<\/a>. Will it be given?
<\/strong>It is a genuine request. Some companies are establishing their manufacturing lines and they need more time and our internal committee is reviewing it. Since we can’t make changes too often, there are other small tweaks required to the
PLI scheme<\/a>, and once all inputs are put together, it will be taken to the empowered group of secretaries and by March or April, a decision should be taken.

A part of the PLI scheme for telecom equipment is being carved out for a design-led manufacturing scheme, as per the budget. Your comment.
<\/strong>The earlier phase was a broad production-linked incentive scheme. So, we want to tweak it to enable more design to happen within this country … the government wants to ensure equipment with security in focus. From this perspective, it is very important that there is a substantial investment by Indian companies in design and in design-led manufacturing. We wanted to tweak it in such a way that more intellectual properties are generated within the country. This actually gives the country better visibility in international markets and also greater options for exports. So, we would like to be a very significant player in the standards making in the world going forward.

Is the government open to reducing the
5G<\/a> base price?
<\/strong>We want to offer high-quality, affordable 5G services to people. Telecom is not being guided by revenue maximisation but being looked at as a growth driver. The telecom regulator is in the process of looking at this and we look forward to their recommendation.

Budget shows Rs 56,000 crore as non-tax revenue for 2022-23. How much of this will be from 5G?
<\/strong>We haven’t received
Trai<\/a> recommendations yet, so I cannot say how much will come from 5G auctions. The basis for the estimate is just the average of preceding years and not on how much we expect from 5G sale. The 5G spectrum auctions are slated for this year. I don't think there is any worry about achieving these goals.

Who will design the satellite communications
policy<\/a>?
<\/strong>The Department of Space (DoS) is the sector regulator as far as satellites are concerned. DoT’s role comes in allotting spectrum and in communications security. DoS is in the final stages of drafting the
policy<\/a> around satcom.

What are your views of mmWave (28GHz) band as both satellite companies and terrestrial network operators are eyeing it?
<\/strong>This is a novel band being put up for auction for the first time. Therefore, I think, there are a lot of nuances involved which will have to be taken into account. So, let us wait for
Trai<\/a>’s recommendation … The government will take into account all the views of the stakeholders and make very well-informed decision which will be taken in public interest.
\"USO<\/a><\/figure>

USO fund support to drive design-led manufacturing in 5G, 6G: K. Rajaraman<\/a><\/h2>

Rajaraman said the department is looking forward to \"effectively deploying\" it to enable local manufacturing especially in the areas of 5G, 5G advanced and 6G, and in addition advanced optical communications, and quantum computing technologies would also deserve a boost.<\/p><\/div>

\"&lt;p&gt;K.
K. Rajaraman<\/span><\/figcaption><\/figure>NEW DELHI: The government believes the telecom reforms announced mid-September have started to show early results, says Department of Telecommunications<\/a> (DoT) secretary K Rajaraman. <\/strong>Speaking to ET’s Anandita Singh Mankotia & Muntazir Abbas, Rajaraman says the government will price 5G<\/a> to make the services affordable as the telecom sector is viewed as an engine to drive growth and not for maximising revenue. The second generation of reforms, he says, will further reduce the compliance burden on operators and should be released in the next months. Edited excerpts:

<\/em><\/em><\/em>Your take on the overall state of the industry?<\/strong>
Worst is behind the industry with three private players and
BSNL<\/a>. The reforms have shown fairly good early results, so we expect this process of reforms to further help the industry strengthen itself and provide more affordable and high-quality services.

Did the September 2021 reforms play a role in facilitating Google’s investment into
Bharti Airtel<\/a>?<\/strong>
I do think so because the idea of the macroeconomic reforms has been to support investment and reduce cost of doing business. So, from that perspective, any foreign investor would look at India very positively.

What will be the focus of the next set of telecom reforms?<\/strong>
We are looking at deepening the process of ease of doing business, essentially compliance. Last year, 87 compliances were done away with. A number of other licences, both wireless as well as wireline, need to be further simplified. In addition to that, there are new areas where improvements would happen, such as satellite communications and M2M communications.

Can we expect a reduction in licence fee and taxes in the second wave of reforms?<\/strong>
These things will require examination. The second generation of reforms will come in the next few months.

Will DoT be withdrawing its appeal in the Supreme Court in the one-time spectrum charge case? What is DoT’s stance in the points of interconnection case?
<\/strong>On legal matters, I won't be able to say anything.

Does
Vodafone Idea<\/a>’s computation of government equity potentially at 35.8% tally with DoT’s calculation?
<\/strong>This aspect is currently being dealt with by the Ministry of Finance. This is the first of its kind of calculation and we should have clarity in the next one and a half months.

Has
Vodafone Idea<\/a> updated the government about its fundraising?
<\/strong>They are in the process of raising funds is what they have told us. It is not correct for me to answer any further; you will have to ask them.

With the government having a 35.8% stake in Vodafone Idea now, has the department readied the exit strategy?
<\/strong>Essentially, the finance ministry is working out the terms and conditions, and the manner in which I think this a step will be taken. But there are a number of options including legal issues involved. The finance ministry is examining, and I am sure that the ministry will come out with a suitable exit plan because essentially, it is the finance ministry, especially the Department of Investment and Public Asset Management (DIPAM), who's the asset manager of the government which takes a call on all these matters. So, we will definitely reach out to them to come up with a coherent exit plan, also as part of the overall industry.

But when is this exit plan likely to conclude?<\/strong>
Maybe in a month or so, because this is the first time it is being done.

Telecom equipment makers have sought extension in the
PLI scheme<\/a>. Will it be given?
<\/strong>It is a genuine request. Some companies are establishing their manufacturing lines and they need more time and our internal committee is reviewing it. Since we can’t make changes too often, there are other small tweaks required to the
PLI scheme<\/a>, and once all inputs are put together, it will be taken to the empowered group of secretaries and by March or April, a decision should be taken.

A part of the PLI scheme for telecom equipment is being carved out for a design-led manufacturing scheme, as per the budget. Your comment.
<\/strong>The earlier phase was a broad production-linked incentive scheme. So, we want to tweak it to enable more design to happen within this country … the government wants to ensure equipment with security in focus. From this perspective, it is very important that there is a substantial investment by Indian companies in design and in design-led manufacturing. We wanted to tweak it in such a way that more intellectual properties are generated within the country. This actually gives the country better visibility in international markets and also greater options for exports. So, we would like to be a very significant player in the standards making in the world going forward.

Is the government open to reducing the
5G<\/a> base price?
<\/strong>We want to offer high-quality, affordable 5G services to people. Telecom is not being guided by revenue maximisation but being looked at as a growth driver. The telecom regulator is in the process of looking at this and we look forward to their recommendation.

Budget shows Rs 56,000 crore as non-tax revenue for 2022-23. How much of this will be from 5G?
<\/strong>We haven’t received
Trai<\/a> recommendations yet, so I cannot say how much will come from 5G auctions. The basis for the estimate is just the average of preceding years and not on how much we expect from 5G sale. The 5G spectrum auctions are slated for this year. I don't think there is any worry about achieving these goals.

Who will design the satellite communications
policy<\/a>?
<\/strong>The Department of Space (DoS) is the sector regulator as far as satellites are concerned. DoT’s role comes in allotting spectrum and in communications security. DoS is in the final stages of drafting the
policy<\/a> around satcom.

What are your views of mmWave (28GHz) band as both satellite companies and terrestrial network operators are eyeing it?
<\/strong>This is a novel band being put up for auction for the first time. Therefore, I think, there are a lot of nuances involved which will have to be taken into account. So, let us wait for
Trai<\/a>’s recommendation … The government will take into account all the views of the stakeholders and make very well-informed decision which will be taken in public interest.
\"USO<\/a><\/figure>

USO fund support to drive design-led manufacturing in 5G, 6G: K. Rajaraman<\/a><\/h2>

Rajaraman said the department is looking forward to \"effectively deploying\" it to enable local manufacturing especially in the areas of 5G, 5G advanced and 6G, and in addition advanced optical communications, and quantum computing technologies would also deserve a boost.<\/p><\/div>